north carolina personal automobile...

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We know how important it is for you to stay on the move.

500 W 5th Street Winston Salem, NC 27101-2728

Integon General Insurance CorporationNew South Insurance CompanyIntegon Indemnity Corporation

Integon National Insurance CompanyIntegon Casualty Insurance Company

Integon Preferred Insurance CompanyAgent Alliance Insurance Company

07164 (11012011)

North Carolina Personal Automobile Policy

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500 W 5th Street • PO Box 3199 • WinstonSalem, NC 27102-3199

“Please refer to your declarations page for the name of the company issuing this policy.”

This policy is a legal contract between you and us. The Personal Auto Policy has been:

• designed for easy reference;• simplified to make it more understandable; and• arranged to better display the available coverage.

This policy is a legal contract between you and us. These policy provi-sions along with the Declarations Page, application and endorsements, if any, issued to form a part thereof, complete this policy.

READ YOUR POLICY CAREFULLY

To Report A Claim1-800-468-3466

YOUR PERSONAL AUTO POLICYQUICK REFERENCE

DECLARATIONS PAGE

Your Name and AddressYour Auto or Trailer

Policy PeriodCoverages and Amounts of Insurance

INDEX OF POLICY PROVISIONS

AGREEMENT ...................................................................1

DEFINITIONS ...................................................................1

PART A > LIABILITY COVERAGE .....................................2

INSURING AGREEMENT .........................................2

SUPPLEMENTARY PAYMENTS ................................3

EXCLUSIONS ............................................................3

LIMIT OF LIABILITY ..................................................5

OUT OF STATE COVERAGE ......................................5

FINANCIAL RESPONSIBILITY REQUIRED ................5

OTHER INSURANCE .................................................5

PART B > MEDICAL PAYMENTS COVERAGE .................6


EXCLUSIONS ............................................................7


NON-DUPLICATION .................................................8

OTHER INSURANCE ................................................8

ARBITRATION ..........................................................8

PART C1 > UNINSURED MOTORISTS COVERAGE ........9


EXCLUSIONS ..........................................................10

LIMIT OF LIABILITY ................................................10

OTHER INSURANCE ...............................................11

OUR RIGHT TO RECOVER PAYMENT ....................11

ARBITRATION ........................................................12

PART C2 > COMBINED UNINSURED/UNDERINSURED MOTORISTS COVERAGE ..............................................12

INSURING AGREEMENT .......................................12

EXCLUSIONS ..........................................................14



OTHER INSURANCE ...............................................17

ARBITRATION ........................................................17

PART D > COVERAGE FOR DAMAGE TO YOUR AUTO .............................................................17


TRANSPORTATION EXPENSES ..............................19

SALVAGE CHARGES ...............................................19

EXCLUSIONS ..........................................................19


PAYMENT OF LOSS ................................................22

NO BENEFIT TO BAILEE .........................................22

OTHER INSURANCE ...............................................22

APPRAISAL .............................................................22

LOSS PAYEE ............................................................22

PART E > DUTIES AFTER AN ACCIDENT OR LOSS - FILING A CLAIM .................................................23

GENERAL DUTIES ..................................................23

ADDITIONAL DUTIES FOR COVERAGE FOR DAMAGE TO YOUR AUTO .....................................23

PART F > GENERAL PROVISIONS .................................24

BANKRUPTCY ........................................................24

CHANGES ...............................................................24

FRAUD OR MATERIAL MISREPRESENTATION ......24

LEGAL ACTION AGAINST US .................................24


POLICY PERIOD AND TERRITORY .........................25

TERMINATION - CANCELLATION, NONRENEWAL, AUTOMATIC TERMINATION, OTHER TERMINATION PROVISIONS .................................25

TRANSFER OF YOUR INTEREST IN THIS POLICY ..27

AUTO REPAIRS .......................................................27

CHOICE OF LAW ....................................................27

NC 00 01 (Ed. 06-05)

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500 W 5th Street • PO Box 3199 • WinstonSalem, NC 27102-3199

“Please refer to your declarations page for the name of the company issuing this policy.”

This policy is a legal contract between you and us. The Personal Auto Policy has been:

• designed for easy reference;• simplified to make it more understandable; and• arranged to better display the available coverage.

This policy is a legal contract between you and us. These policy provi-sions along with the Declarations Page, application and endorsements, if any, issued to form a part thereof, complete this policy.

READ YOUR POLICY CAREFULLY

To Report A Claim1-800-468-3466

YOUR PERSONAL AUTO POLICYQUICK REFERENCE

DECLARATIONS PAGE

Your Name and AddressYour Auto or Trailer

Policy PeriodCoverages and Amounts of Insurance

INDEX OF POLICY PROVISIONS

AGREEMENT ...................................................................1

DEFINITIONS ...................................................................1

PART A > LIABILITY COVERAGE .....................................2


SUPPLEMENTARY PAYMENTS ................................3

EXCLUSIONS ............................................................3


OUT OF STATE COVERAGE ......................................5

FINANCIAL RESPONSIBILITY REQUIRED ................5

OTHER INSURANCE .................................................5

PART B > MEDICAL PAYMENTS COVERAGE .................6


EXCLUSIONS ............................................................7


NON-DUPLICATION .................................................8

OTHER INSURANCE ................................................8

ARBITRATION ..........................................................8

PART C1 > UNINSURED MOTORISTS COVERAGE ........9


EXCLUSIONS ..........................................................10


OTHER INSURANCE ...............................................11


ARBITRATION ........................................................12

PART C2 > COMBINED UNINSURED/UNDERINSURED MOTORISTS COVERAGE ..............................................12


EXCLUSIONS ..........................................................14



OTHER INSURANCE ...............................................17

ARBITRATION ........................................................17

PART D > COVERAGE FOR DAMAGE TO YOUR AUTO .............................................................17


TRANSPORTATION EXPENSES ..............................19

SALVAGE CHARGES ...............................................19

EXCLUSIONS ..........................................................19


PAYMENT OF LOSS ................................................22

NO BENEFIT TO BAILEE .........................................22

OTHER INSURANCE ...............................................22

APPRAISAL .............................................................22

LOSS PAYEE ............................................................22

PART E > DUTIES AFTER AN ACCIDENT OR LOSS - FILING A CLAIM .................................................23

GENERAL DUTIES ..................................................23

ADDITIONAL DUTIES FOR COVERAGE FOR DAMAGE TO YOUR AUTO .....................................23

PART F > GENERAL PROVISIONS .................................24

BANKRUPTCY ........................................................24

CHANGES ...............................................................24

FRAUD OR MATERIAL MISREPRESENTATION ......24

LEGAL ACTION AGAINST US .................................24


POLICY PERIOD AND TERRITORY .........................25

TERMINATION - CANCELLATION, NONRENEWAL, AUTOMATIC TERMINATION, OTHER TERMINATION PROVISIONS .................................25

TRANSFER OF YOUR INTEREST IN THIS POLICY ..27

AUTO REPAIRS .......................................................27

CHOICE OF LAW ....................................................27

NC 00 01 (Ed. 06-05)


64

(d) to injury or death due to war, whether or not declared, civil war, insurrecti on, rebellion or revoluti on, or to any act or conditi on incident to any of the foregoing.

Conditi ons

Conditi ons 1, 2, 3 and 4 apply to Coverages A, B and C. Conditi ons 5 and 6 only apply to Coverage A.

1. Policy Provisions: None of the Insuring Agreements, Exclusions or Conditi ons of the policy shall apply to the insurance aff orded by this endorsement except Part F, General Provisions enti tled “Policy Period and Territory,” “Changes,” “Legal Acti on Against Us” and “Terminati on.”

2. Noti ce of Claim: When loss covered hereunder occurs, writt en noti ce thereof shall be given by or on behalf of the insured or the benefi ciary to the Company or any of its authorized agents as soon as practi cable.

3. Proof of Claim; Medical Reports: As soon as practi cable, the injured person, or the benefi ciary in the event of death, or someone on his or her behalf, shall give to the Company writt en proof of claim, under oath if required, and shall aft er each request from the Company execute authorizati on to enable the Company to obtain medical reports and copies of records.

Proof of claim shall be made upon forms furnished by the Company unless the Company shall have failed to furnish such forms within fi ft een days aft er receiving noti ce of claim.

The injured person shall submit to physical examinati on by physicians selected by the Company when and as oft en as the Company may reasonably require.

4. Death of Named Insured: If the Named Insured shown in the Declarati ons dies, any insurance aff orded under this endorsement with respect to any surviving insured shall be conti nued while the policy is in eff ect.

5. Payment of Death Indemnity; Autopsy - Coverage A: If the decedent insured be survived by a spouse who was a resident of the same household at the ti me of the accident, indemnity for death is payable to such spouse; otherwise, if the decedent insured was a minor, indemnity for death is payable to any parent thereof who was a resident of the same household at the ti me of the accident, otherwise indemnity for death is payable to the decedent insured’s estate. The Company shall have the right and opportunity to make an autopsy where is not forbidden by law.

6. Benefi ciary - Coverage A: Consent of benefi ciary is not requisite to cancellati on, assignment, change of benefi ciary, or any other change in the policy on in this endorsement.

Copyright, North Carolina Rate Bureau, 1980, 1987

1

PERSONAL AUTO POLICYAGREEMENTIn return for payment of the premium and subject to all the terms of this policy, we agree with you as follows:

DEFINITIONSThroughout this policy, “you” and “your” refer to:

1. The “named insured” shown in the Declarati ons; and2. The spouse if a resident of the same household. “We,” “us” and “our” refer to the Company providing this insurance. For purposes of this policy, a private passenger type auto, pickup or van shall be

deemed to be owned by a person if leased:1. Under a writt en agreement to that person; and2. For a conti nuous period of at least 6 months.Other words and phrases are defi ned. They are boldfaced or in quotati on marks when used.

“Bodily injury” means bodily harm, sickness or disease, including death that results.

“Business” means trade, profession or occupati on.

“Family member” means a person related to you by blood, marriage or adopti on who is a resident of your household. This includes a ward or foster child.

“Occupying” means in; upon; getti ng in, on, out or off .

“Property damage” means physical damage to, destructi on of, or loss of use of tangible property.

“Trailer” means a vehicle designed to be pulled by a:

1. Private passenger auto or stati on wagon type; or2. Pickup truck or van.It also means a farm wagon or farm implement while pulled by a vehicle listed in 1. or 2. above.

“Your covered auto” means:

1. Any vehicle shown in the Declarati ons.2. A newly acquired auto.3. Any trailer you own.4. Any auto or trailer not owned by you while used as a temporary substi tute for any

other vehicle described in this defi niti on which is out of normal use because of its:a. breakdown;b. repair;c. servicing;d. loss; ore. destructi on.

This provision (4.) does not apply to Part D- Coverage for Damage to Your Auto.


64


Conditi ons











1

















2

“Newly acquired auto” means any of the following types of vehicles you become the owner of during the policy period:

1. a private passenger auto or stati on wagon type; or2. a pickup truck or van that:

a. has a Gross Vehicle Weight as specifi ed by the manufactrurer of less than 10,000 pounds; and

b. is not used for the delivery or transportati on of goods and materials unless such use is:(1) incidental to your business of installing, maintaining or repairing furnishings

or equipment; or(2) for farming or ranching.

Any coverage for a newly acquired auto is subject to the following:

1. If the newly acquired auto replaces a vehicle shown in the Declarati ons, it will have the same coverage as the vehicle it replaced except that coverage, if any, under Part D- Coverage for Damage To Your Auto applies only if you ask us to insure it within 30 days aft er you become the owner.

2. If a newly acquired auto is in additi on to any shown in the Declarati ons, it will have the broadest coverage we now provide for any vehicle shown in the Declarati ons if you ask us to insure it within 30 days aft er you become the owner.

3. Coverage under this policy terminates for any newly acquired auto on the eff ecti ve date and ti me of a policy (other than this policy) issued by us or any other company that describes such vehicle on its declarati ons page.

4. If you ask us to insure a newly acquired auto within the applicable specifi ed ti me period described in 1. or 2. above, any coverage we provide for the newly acquired auto begins on the date you become the owner. If you ask us to insure a newly acquired auto aft er the applicable specifi ed ti me period described above has elapsed, any coverage we provide for the newly acquired auto will begin at the ti me you request the coverage. You must pay us any added amount due for any coverage we provide for a newly acquired auto.

PART A > LIABILITY COVERAGEINSURING AGREEMENTWe will pay damages for bodily injury or property damage for which any insured becomes legally responsible because of an auto accident. Damages include prejudgment interest awarded against the insured. We will sett le or defend, as we consider appropriate, any claim or suit asking for these damages. In additi on to our limit of liability, we will pay all defense costs we incur. Our duty to sett le or defend ends when our limit of liability for this coverage has been exhausted. We have no duty to defend any suit or sett le any claim for bodily injury or property damage not covered under this policy.

“Insured” as used in this Part means:

1. You or any family member for the ownership, maintenance or use of any auto or trailer.

2. Any person using your covered auto.3. For your covered auto, any person or organizati on but only with respect to legal

responsibility for acts or omissions of a person for whom coverage is aff orded under this Part.

63

For Loss by Removal: Of one or more entire toes(at least one entire phalanx) 100.00 200.00

For a Hospital confi ning injury, except as an outpatient 25.00 50.00Coverage C - Total DisabilityWe will pay weekly indemnity at the rate shown in the Schedule for the period of conti nuous total disability of the insured which shall result directly and independently of all other causes from bodily injury caused by accident and sustained by the insured while occupying, or through being struck by, an auto, provided:

(1) Such disability shall commence within twenty days from the date of the accident.(2) Any disability during the period of 52 weeks aft er the date of the accident shall

be deemed total disability only if it shall conti nuously prevent the insured from performing every duty of his or her regular occupati on.

(3) Any disability aft er 52 weeks aft er the date of the accident shall be deemed total disability only if it shall conti nuously prevent the insured from engaging in any occupati on or employment for wage or profi t.

(4) The weekly indemnity for total disability as provided above shall in no event extend beyond the number of weeks as shown in the Schedule from the date of commencement of disability.

(5) Weekly indemnity for total disability is payable to the insured who is disabled and, subject to proof of claim accrued, weekly indemnity is payable every four weeks and any balance at terminati on of the disability period for which the Company is liable.

(6) The amount payable under this coverage shall not be subject to any reducti on because of any benefi ts available under any Workers’ Compensati on law or similar law or from any other source.

Defi nitions - With respect to this insurance:

“auto” means a land motor vehicle or trailer not operated on rails or crawler-treads, but does not mean: (1) a farm type tractor or other equipment designed for use principally off public roads, except while actually upon public roads, or (2) a land motor vehicle or trailer while located for use as a residence or premises and not as a vehicle .

“insured” means the person named in the schedule.

Exclusions

This insurance does not apply:

(a) to bodily injury or death sustained in the course of his or her occupati on by any person while engaged (1) in duti es incident to the operati on, loading or unloading of, or as an assistant on, a public or livery conveyance or commercial auto, or (2) in duti es incident to the repair or servicing of autos;

(b) to loss caused by or resulti ng for disease – except pus forming infecti on which shall occur through bodily injury to which this insurance applies;

(c) to suicide, sane or insane, or to any att empt thereat;

62

Table II

If applicable principal sum is

For Fractureof Bones: $5,000.00 $10,000.00Skull (except bones of face or nose) $175.00 $350.00Thigh 150.00 300.00Arm, between elbow and 150.00 300.00shoulder

Pelvis (except coccyx) 125.00 250.00Vertebra or Vertebrae

(except coccyx and vertebral processes) 125.00 250.00Shoulder Blade 100.00 200.00Leg 100.00 200.00Knee Cap 100.00 200.00Collar Bone 75.00 150.00Forearm, between wrist 75.00 150.00and elbow

Foot (except toes) 62.50 125.00Hand (except fi ngers) 62.50 125.00Sternum 50.00 100.00Lower Jaw (except alveolar process) 37.50 75.00One or more ribs, fi ngers or toes 25.00 50.00For CompleteDislocations: $5,000.00 $10,000.00Bones of face or nose 25.00 50.00Coccyx or Vertebral Processes 25.00 50.00Hip Joint 150.00 300.00Knee Joint (except patella) 75.00 150.00Bone or Bones of Foot 75.00 150.00(except toes)Ankle Joint 75.00 150.00Wrist Joint 62.50 125.00Elbow Joint 50.00 100.00Shoulder Joint 37.50 75.00Bone or Bones of Hand 25.00 50.00 (except fi nger)Collar Bone 25.00 50.00One or more fi ngers or toes 12.50 25.00

3

4. For any auto or trailer, other than your covered auto, any person or organizati on but only with respect to legal responsibility for acts or omissions of you or any family member for whom coverage is aff orded under this Part. This provision applies only if the person or organizati on does not own or hire the auto or trailer.

SUPPLEMENTARY PAYMENTSIn additi on to our limit of liability:

1. We will pay the following on behalf of an insured:a. Premiums on appeal bonds and bonds to release att achments in any suit we

defend. We have no duty to purchase bonds in an amount exceeding our Limit of Liability, and we have no duty to apply for or furnish these bonds; and

b. All costs taxed against the insured and interest accruing aft er a judgment is entered in any suit we defend. Costs do not include prejudgment interest. Our duty to pay post-judgment interest ends when we off er to pay that part of the judgment which does not exceed our limit of liability for this coverage.

2. We will pay the following to an insured:a. Up to $250 for the cost of bail bonds required because of traffi c law violati ons

resulti ng from an accident. The accident must result in bodily injury or property damage covered under this policy.

b. Up to $200 a day for loss of wages or salary, but not other income, because of att endance at hearings or trials at our request;

c. Up to $200 for expenses incurred by an insured for Emergency fi rst aid to others performed at the scene of an accident that involves any auto covered by this policy; and

d. Other reasonable expenses incurred at our request.The amount of any costs, wages, salary, or other expenses listed above that are incurred by an insured must be reported to us by such insured before we will make payment.

EXCLUSIONSA. We do not provide Liability Coverage for any insured:

1. Who intenti onally causes bodily injury or property damage. This exclusion applies only to the extent that the limit of liability of this policy exceeds the minimum limit required by the fi nancial responsibility law of North Carolina.

2. For property damage to property owned or being transported by that insured. 3. For property damage to property:

a. rented to;b. used by; orc. in the care of;that insured. This exclusion does not apply to a residence or private garage.

4. For bodily injury to an employee of that insured during the course of employment. This exclusion does not apply to a domesti c employee unless workers’ compensati on benefi ts are required or available for that domesti c employee.

5. For that insured’s liability arising out of the ownership or operati on of a vehicle while it is being used as a public or livery conveyance. This exclusion does not apply to a share-the-expense car pool.


2
















63












Exclusions





62

Table II






3


















4

6. While employed or otherwise engaged in the business of:a. selling;b. repairing;c. servicing;d. storing; ore. parking

vehicles designed for use mainly on public highways. This includes road testi ng and delivery. This exclusion does not apply to the ownership, maintenance or use of your covered auto by:a. you;b. any family member; orc. any partner, agent or employee of you or any family member.

This exclusion applies only to the extent that the limit of liability of this policy exceeds the minimum limit required by the fi nancial responsibility law of North Carolina.

7. Maintaining or using any vehicle while that insured is employed or otherwise engaged in any business (other than farming or ranching) not described in Exclusion 6. This exclusion does not apply to the maintenance or use of a:a. private passenger auto;b. pickup or van that:

(1) You own; or(2) You do not own while used as a temporary substi tute for your covered

auto which is out of normal use because of its:(a) breakdown;(b) repair;(c) servicing;(d) loss; or(e) destructi on; or

c. trailer used with a vehicle described in a. or b. above.8. Using a vehicle without a reasonable belief that that insured is enti tled to do so. This Exclusion A.8. does not apply to a family member using your covered auto

which is owned by you.9. For bodily injury or property damage for which that insured:

a. is an insured under a nuclear energy liability policy; orb. would be an insured under a nuclear energy liability policy but for its

terminati on upon exhausti on of its limit of liability. A nuclear energy liability policy is a policy issued by any of the following or their

successors: a. Nuclear Energy Liability Insurance Associati on;b. Mutual Atomic Energy Liability Underwriters; orc. Nuclear Insurance Associati on of Canada.

61

Coverage A - Death Indemnity

We will pay the principal sum stated in the Schedule in the event of the death of the insured which shall result directly and independently of all other causes from bodily injury caused by accident and sustained by the insured while occupying, or through being struck by, an auto, provided the death shall occur (1) within ninety days aft er the date of the accident, or (2) within fi ft y-two weeks aft er the date of the accident and during a period of conti nuous total disability of the insured for which weekly indemnity is payable under the Total Disability Coverage.

Coverage B - Specifi c Disability Benefi ts

(1) Dismemberment and Loss of Sight Benefi ts(2) Fractures and Dislocati on Benefi ts

We will pay the highest applicable amount stated for loss listed in the following Tables. Coverage applies only to bodily injury caused by accident and sustained by the insured while occupying, or through being struck by, an auto, provided loss is sustained by the insured within ninety days aft er the date of accident.

Any amount payable under this Coverage shall reduce any amount payable under the Death Indemnity Coverage of this endorsement.

Table I

For Loss of If applicable If applicable principal sum principal sum is $5,000 is $10,000

Both Hands or Both Feet or Sight of Both Eyes $5,000 $10,000One Hand and One Foot 5,000 10,000Either Hand or Foot and Sightof One Eye 5,000 10,000Either Hand or Foot 2,500 5,000Sight of One Eye 1,750 3,500Thumb and Index Finger ofEither Hand 1,250 2,500“Loss” shall mean with regard to:

(1) hands and feet, actual severance through or above wrist or ankle joints;(2) eyes, enti re and irrecoverable loss of sight;(3) thumb and index fi nger, actual severance through or above metacarpophalangeal

joints.

60

9. external discharge or leakage of water. This does not include loss resulti ng from:a. rain;b. snow; orc. sleet;

whether or not wind driven.

“Covered property” means:1. radio and television antennas, awnings, cabanas, or equipment designed to create

additi onal living faciliti es while the auto is off a highway; and2. household furniture or other personal property owned by you or for which you may be

liable. If you so elect, property owned by a family member or by your employee who resides with you is covered.

ADDITIONAL EXCLUSIONSWe will not pay for loss or damage to:

1. equipment or accessories of your covered auto which are usual to an auto of the private passenger or truck type;

2. arti cles held as samples or for sale, storage, repair, or delivery aft er sale; exhibiti on merchandise, theatrical wardrobes;

3. business or offi ce equipment; or4. records or accounts, currency, coins, deeds, banknotes, bullion, evidences of debt,

securiti es, ti ckets, stamps, or manuscripts. LIMIT OF LIABILITY

Our limit of liability for loss will be the lesser of the:1. stated amount shown in the Schedule or in the Declarati ons;2. actual cash value of the property at the ti me of loss or damage; or3. amount necessary to repair or replace the property.Our payment for loss will be reduced by a $25 deducti ble. The maximum amount payable is the Limit of Liability less a $25 deducti ble. However, the deducti ble will not apply to loss caused by fi re or lightning. An adjustment for depreciati on and physical conditi on will be made in determining actual cash value at the ti me of loss.

NC 03 99 (Ed. 7-87)THIS ENDORSEMENT DOES NOT APPLY UNLESS THIS

FORM NUMBER IS LISTED UNDER THE FORMS SECTION ON THE DECLARATIONS PAGE

AUTO DEATH INDEMNITY, SPECIFIC DISABILITY,AND TOTAL DISABILITY BENEFITS COVERAGES

We agree with the named insured subject to all the provisions of this endorsement and to all of the provisions of the policy except as modifi ed herein, as follows:

The insurance aff orded is only with respect to each of the following coverages as are indicated by a specifi c premium charge or charges, and only with respect to the person or persons designated as insured.

5

B. We do not provide Liability Coverage for the ownership, maintenance or use of:1. Any vehicle, other than your covered auto, which is:

a. owned by you; orb. furnished for your regular use.

2. Any vehicle, other than your covered auto, which is :a. owned by any family member; orb. furnished for the regular use of any family member.

However, this exclusion (B.2.) does not apply to your maintenance or use of any vehicle which is:a. owned by a family member; orb. furnished for the regular use of a family member.

LIMIT OF LIABILITYThe limit of liability shown in the Declarati ons for each person for Bodily Injury Liability Coverage is our maximum limit of liability for all damages for bodily injury, including damages for care, loss of services or death, sustained by any one person in any one auto accident. Subject to this limit for each person, the limit of liability shown in the Declarati ons for each accident for Bodily Injury Liability Coverage is our maximum limit of liability for all damages for bodily injury resulti ng from any one auto accident. The limit of liability shown in the Declarati ons for each accident for Property Damage Liability Coverage is our maximum limit of liability for all damages to all property resulti ng from any one auto accident. This is the most we will pay as a result of any one auto accident regardless of the number of:

1. Insureds;2. Claims made;3. Vehicles or premiums shown in the Declarati ons; or4. Vehicles involved in the auto accident.OUT OF STATE COVERAGEIf an auto accident to which this policy applies occurs in any state or province other than the one in which your covered auto is principally garaged, we will interpret your policy for that accident as follows:

If the state or province has:

1. A fi nancial responsibility or similar law specifying limits of liability for bodily injury or property damage higher than the limit shown in the Declarati ons, your policy will provide the higher specifi ed limit.

2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your policy will provide at least the required minimum amounts and types of coverage.

No one will be enti tled to duplicate payments for the same elements of loss.

FINANCIAL RESPONSIBILITY REQUIREDWhen this policy is certi fi ed as future proof of fi nancial responsibility, this policy will comply with the law to the extent required.

OTHER INSURANCEIf there is other applicable liability insurance, we will pay only our share of the loss. Our share is the proporti on that our limit of liability bears to the total of all applicable limits.


4












61







Table I




joints.

60

















5














6

However, any insurance we provide for a vehicle you do not own shall be excess over any other collecti ble insurance.

PART B > MEDICAL PAYMENTS COVERAGEINSURING AGREEMENTWe will pay reasonable expenses incurred for necessary medical and funeral services because of bodily injury:

1. Caused by accident; and2. Sustained by an insured.We will pay only those expenses incurred for services rendered within 3 years from the date of the accident.

Reasonable medical expenses do not include expenses:

1. For treatment, services, products or procedures that are:a. Experimental in nature, for research, or not primarily designed to serve a medical

purpose; orb. Not commonly and customarily recognized throughout the medical profession

and within the United States as appropriate for the treatment of bodily injury; or

2. Incurred for:a. The use of thermography or other related procedures of a similar nature; orb. The use of acupuncture or other related procedures of a similar nature; orc. The purchase or rental of equipment not primarily designed to serve a medical

purpose. Expenses are reasonable only if they are consistent with the usual fees charged by the majority of similar medical providers in the geographical area in which the expenses were incurred for the specifi c medical service.

Services are necessary only if the services are rendered by a licensed medical provider within the scope of the provider’s practi ce and license and are essenti al in achieving maximum medical improvement for the bodily injury sustained in the accident.

We have the right to make or obtain a uti lizati on review of the medical expenses and services to determine if they are reasonable and necessary for the bodily injury sustained.


1. You or any family member:a. while occupying; orb. as a pedestrian when struck by;a motor vehicle designed for use mainly on public roads or a trailer of any type.

2. Any other person while occupying:a. your covered auto; orb. any other motor vehicle:

(1) operated by you; or(2) operated by a family member if the motor vehicle is a private passenger

auto or trailer.

59

ADDITIONAL EXCLUSIONS

We will not pay for loss or damage to:




securiti es, ti ckets, stamps, or manuscripts. LIMIT OF LIABILITYOur limit of liability for loss will be the lesser of the:

1. stated amount shown in the Schedule or in the Declarati ons;2. actual cash value of the property at the ti me of loss or damage; or3. amount necessary to repair or replace the property.Our payment for loss will be reduced by a $25 deducti ble. The maximum amount payable is the Limit of Liability less a $25 deducti ble. However, the deducti ble will not apply to loss caused by fi re or lightning. An adjustment for depreciati on and physical conditi on will be made in determining cash value at the ti me of loss.




AUTO HOMES - CONTENTS COVERAGEExcluding Malicious Mischief and Vandalism

The provisions and exclusions that apply to Part D also apply to this endorsement except Exclusion 8 and the Limit of Liability provision. We will pay for direct and accidental loss or damage to covered property while it is:

1. in or att ached to; or2. within 25 feet of and used in connecti on withthe auto shown in the Schedule or in the Declarati ons for which a specifi c premium charge indicates that Auto Homes - Contents Coverage is provided.

Loss or damage to covered property must be caused by:

1. fi re or lightning;2. windstorm;3. hail;4. earthquake;5. explosion;6. riot or civil commoti on;7. forced landing of any aircraft or its parts or equipment;8. fl ood or rising waters;

58

Loss to any “snowmobile:”a. operated in; orb. while in practi ce or preparati on for;

any racing or speed contest regardless of whether or not such contest is prearranged or organized.




AUTO HOMES - CONTENTS COVERAGEThe provisions and exclusions that apply to Part D also apply to this endorsement except Exclusion 8 and the Limit of Liability provision. We will pay for direct and accidental loss or damage to covered property while it is:

1. in or att ached to; or2. within 25 feet of and used in connecti on with the auto shown in the Schedule or in the Declarati ons for which a specifi c premium

charge indicates that Auto Homes - Contents Coverage is provided.Loss or damage to covered property must be caused by:

1. fi re or lightning;2. windstorm;3. hail;4. earthquake;5. explosion;6. riot or civil commoti on;7. forced landing of any aircraft or its parts or equipment;8. fl ood or rising waters;9. vandalism and malicious mischief;10. external discharge or leakage of water. This does not include loss resulti ng from:

a. rain;b. snow; orc. sleet;

whether or not wind driven.“Covered property” means:

1. radio and television antennas, awnings, cabanas, or equipment designed to create additi onal living faciliti es while the auto is off a highway; and

2. household furniture or other personal property owned by you or for which you may be liable. If you so elect, property owned by a family member or by your employee who resides with you is covered.

7

EXCLUSIONSWe do not cover Medical Payments Coverage for any insured for bodily injury:

1. Sustained while occupying your covered auto when it is being used as a public or livery conveyance. This exclusion does not apply to a share-the-expense car pool.

2. Sustained while occupying any vehicle located for use as a residence or premises.3. Occurring while employed or otherwise engaged in the business of:

a. selling;b. repairing;c. servicing;d. storing; ore. parking;

vehicles designed for use mainly on public highways. This includes road testi ng and delivery. This exclusion applies only if Workers’ Compensati on benefi ts are available for the bodily injury.

4. Sustained while occupying, or when struck by, any vehicle (other than your covered auto) which is:a. owned by you; orb. furnished for your regular use.

5. Sustained while occupying, or when struck by, any vehicle (other than your covered auto which is:a. owned by any family member; orb. furnished for the regular use of any family member.However, this exclusion does not apply to you.

6. Sustained while occupying a vehicle without a reasonable belief that that insured is enti tled to do so.

This Exclusion 6. does not apply to a family member using your covered auto which is owned by you.

7. Sustained while occupying any auto not owned by, or furnished for the regular use of, you or any family member while used to carry persons or property for a fee. This exclusion does not apply to:a. a share-the-expense car pool, orb. you or any family member.

8. Resulti ng from the maintenance or use of any auto not owned by, or furnished for the regular use of, you or any family member while that insured is engaged in the business of:a. selling;b. repairing;c. servicing;d. storing; ore. parking;

vehicles designed for use mainly on public highways. This includes road testi ng and delivery. This exclusion does not apply to you or any family member.


6
















auto or trailer.

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58














7














8

9. Resulti ng from the maintenance or use of any auto not owned by, or furnished for the regular use of, you or any family member while that insured is employed or otherwise engaged in any business not described in Exclusion 8. This exclusion does not apply:a. to you or any family member; orb. if the bodily injury results from the operati on of a private passenger auto or

trailer by you. 10. Caused by or as a consequence of:

a. war (declared or undeclared)b. civil war;c. insurrecti on; ord. rebellion or revoluti on.

11. Sustained while occupying any motorized vehicle having fewer than four wheels. LIMIT OF LIABILITYThe limit of liability shown in the Declarati ons for this coverage is our maximum limit of liability for each person injured in any one accident regardless of the number of:

1. Claims made;2. Vehicles or premiums shown in the Declarati ons; or3. Vehicles involved in the accident. NON-DUPLICATIONNo person for whom medical expenses are payable under this coverage shall be paid more than once for the same medical expense under this or similar vehicle insurance, including any no-fault benefi ts required by law.

OTHER INSURANCE If there is other applicable auto medical payments insurance, we will only pay our share of the loss. Our share is the proporti on that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a vehicle you do not own shall be excess over any other collecti ble auto insurance providing payments for medical or funeral expenses.

ARBITRATIONThe amount due under this coverage shall be decided by agreement between the insured and us. If there is no agreement, the amount due shall be decided by arbitrati on upon writt en request of the insured or us. Each party shall select a competent and imparti al arbitrator. These two shall select a third one. If unable to agree on the third one within 30 days, either party may request a judge of a court of record in the county in which the arbitrati on is pending to select a third one. The writt en decision of any two arbitrators shall be binding on us, the insured, any assignee of the insured and any person or organizati on with whom the insured expressly or impliedly contracts for the renditi on of medical services. The arbitrators’ decision shall be limited to whether or not the medical expenses were reasonable and the services were necessary, with the amount due being equal only to the reasonable expenses for necessary services. The arbitrators shall not award puniti ve damages or other noncompensatory damages.

The cost of the arbitrator and any expert witness shall be paid by the party who hired them. The cost of the third arbitrator and other expenses of arbitrati on shall be shared equally by both parti es.

57

We do not provide Medical Payments Coverage for any insured for “bodily injury” sustained while “occupying” a “snowmobile” while it is being used in the “business” of an “insured.”

2. The following exclusions are added: We do not provide Medical Payments Coverage for any insured for “bodily

injury:” Sustained while “occupying” any “snowmobile” while rented or leased to

any person or organizati on other than you; or Sustained while “occupying” any “snowmobile”

a. operated in; orb. while in practi ce or preparati on for any racing or speed contest regardless

of whether such contest is prearranged or organized.C. The “Other Insurance” provision is replaced by the following:OTHER INSURANCE

Any insurance we provide shall be excess over any other collecti ble auto insurance providing payments for medical or funeral expenses.

IV. PART C - UNINSURED MOTORISTS COVERAGE Part C is amended as follows with respect to a “snowmobile:”

A. Except for a “snowmobile,” a vehicle operated on rails or crawler treads is not an “uninsured motor vehicle.”

B. The following exclusions are added to Secti on A. of the Exclusions Secti on: We do not provide coverage for “property damage” or “bodily injury” sustained

by any insured; While “occupying” any “snowmobile” while rented or leased to any insured or

organizati on other than you; or While “occupying” any “snowmobile:”

a. operated in; orb. while in practi ce or preparati on for: any racing or speed contest regardless of whether such contest is prearranged

or organized. C. The “Other Insurance” provision is replaced by the following:

OTHER INSURANCE

Any insurance we provide shall be excess over any other collectible insur-ance.

V. PART D - COVERAGE FOR DAMAGE TO YOUR AUTO Part D is amended by adding the following to the Exclusions Secti on: We will not pay for: Loss to any “snowmobile” while rented or leased to any insured or organizati on other

than you; or

56

2. Any person using “your covered snowmobile.” 3. For “your covered snowmobile,” any person or organizati on but only with

respect to legal responsibility for acts or omissions of a person for whom coverage is aff orded under this Part.

4. For any “snowmobile,” other than “your covered snowmobile,” any person or organizati on but only with respect to legal responsibility for acts or omissions of you or any “family member” for whom coverage is aff orded under this Part. This provision applies only if the person or organizati on does not own or hire the “snowmobile.”

B. The Exclusions Secti on is amended as follows:1. Exclusions A.6. and A.7. are replaced by the following: We do not provide Liability Coverage for any insured maintaining or using a

“snowmobile” in any “business.” 2. The following exclusions are added to Secti on B: We do not provide Liability Coverage for the ownership, maintenance or use

of: Any “snowmobile” while rented to or leased to any insured or organizati on

other than you; or Any “snowmobile:”

a. operated in; orb. while in practi ce or preparati on for: any racing or speed contest regardless of whether such contest is

prearranged or organized.3. The following exclusion applies under Secti on A. to any “snowmobile” for

which the Schedule or Declarati ons indicates that the passenger hazard is excluded:

We do not provide Liability Coverage for any insured for “bodily injury” to any person while “occupying” or while being towed by, the described “snowmobile.”

C. The “Other Insurance” provision is replaced by the following:OTHER INSURANCE

Any insurance we provide shall be excess over any other collecti ble insurance.III. PART B - MEDICAL PAYMENTS COVERAGE Part B is amended as follows with respect to a “snowmobile:”

A. The defi niti on of “insured” is replaced by the following: “Insured” means:

1. You or any “family member;”a. while “occupying;” orb. as a pedestrian when struck by:a “snowmobile.”

2. Any other person while “occupying” “your covered snowmobile.” B. The Exclusions Secti on is amended as follows:

1. Exclusions 3, 8 and 9 are replaced by the following:

9

The arbitrati on shall take place in the county in which the insured resides unless the parti es agree to another place. State court rules governing procedure and admission of evidence shall be used.

PART C1 > UNINSURED MOTORISTS COVERAGEINSURING AGREEMENTWe will pay compensatory damages which an insured is legally enti tled to recover from the owner or operator of an uninsured motor vehicle because of:

1. Bodily injury sustained by an insured and caused by an accident; and2. Property damage caused by an accident.The owner’s or operator’s liability for these damages must arise out of the ownership, maintenance or use of the uninsured motor vehicle.

Any judgment for damages arising out of a suit is not binding on us unless we have been served with a copy of the summons, complaint or other process against the uninsured motorist.

“Insured” as used In this Part means:

1. You or any family member.2. Any other person occupying:

a. your covered auto; orb. Any other auto operated by you.

3. Any person for damages that person is enti tled to recover because of bodily injury to which this coverage applies sustained by a person described in 1. or 2. above.

“Property damage” as used in this Part means injury to or destructi on of:

1. Your covered auto.2. Any property owned by a person listed in 1. or 2. of insured. “Uninsured motor vehicle” means a land motor vehicle or trailer of any type:

1. To which neither:a. a liability bond or policy; norb. cash or securiti es on fi le with the North Carolina Commissioner of Motor

Vehicles; applies at the ti me of the accident.

2. To which a liability bond or policy applies at the ti me of the accident; provided its limit for liability is less than the minimum limit specifi ed by the fi nancial responsibility law of North Carolina.

3. Which, with respect to damages for bodily injury only, is a hit-and-run vehicle whose operator or owner cannot be identi fi ed and which hits:a. you or any family member;b. a vehicle which you or any family member are occupying; orc. your covered auto.

4. To which a liability bond or policy applies at the ti me of the accident but the bonding or insuring company:a. denies coverage; orb. is or becomes insolvent.


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OTHER INSURANCE



than you; or

56


















9

















10

However, “uninsured motor vehicle” does not include any vehicle or equipment:

1. Owned by you.2. Owned or operated by a self-insurer under any applicable motor vehicle law; except a

self-insurer which is or becomes insolvent.3. Owned by:

a. The United States of America;b. Canada;c. a state; ord. an agency, other than a politi cal subdivision of a., b. or c. above.

4. Operated on rails or crawler treads. 5. Which is a farm type tractor or equipment designed mainly for use off public roads

while not on public roads. 6. While located for use as a residence or premises. EXCLUSIONSA. We do not provide Uninsured Motorists Coverage for property damage or bodily

injury sustained by any insured:1. If that insured or the legal representati ve sett les the bodily injury or property

damage claim without our writt en consent.2. While occupying your covered auto while it is being used as a public or livery

conveyance. This exclusion does not apply to a share-the-expense car pool.3. Using a vehicle without a reasonable belief that that insured is enti tled to do so. This Exclusion A.3. does not apply to a family member using your covered auto

which is owned by you.4. For the fi rst $100 of the amount of property damage to the property of each

insured as the result of any one accident. 5. If the property is contained in or struck by a motor vehicle (other than your

covered auto) owned by you or any family member. 6. For any puniti ve or exemplary damages, or legal costs related thereto. 7. While occupying, or when struck by, any motor vehicle owned by you or any

family member which is not insured for this coverage under this policy. This includes a trailer of any type used with that vehicle.

However, this exclusion does not apply to you or any family member.

B. We do not provide Uninsured Motorists Coverage for property damage caused by a hit-and-run vehicle whose operator or owner cannot be identi fi ed.

C. This coverage shall not apply directly or indirectly to benefi t any insurer or self-insurer under any of the following or any similar law:a. worker’s compensati on law; orb. disability benefi ts law.

LIMIT OF LIABILITYThe limit of bodily injury liability shown in the Declarati ons for each person for Uninsured Motorists Coverage is our maximum limit of liability for all damages for bodily injury, including damages for care, loss of services or death, sustained by any one person in any one auto accident.

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With respect to the “snowmobiles” and coverages listed in the Schedule or in the Declarati ons, the provisions of the policy apply unless modifi ed by this endorsement.

I. DEFINITIONS The Defi niti ons Secti on is amended as follows:

A. For the purpose of the coverage provided by this endorsement, the terms “auto,” “motor vehicle” and “vehicle” are replaced by the term “snowmobile” except for Uninsured Motorists Coverage. In Uninsured Motorists Coverage, the term “uninsured motor vehicle” includes a “snowmobile.”

B. The reference to “Declarations” in the Limit of Liability provisions of the policy includes “Schedule.”

C. The following defi niti on is added: “Snowmobile” means:1. A land motor vehicle which is:

a. designed for use mainly off public roads on snow or ice; andb. Propelled solely by means of the following or similar mechanical devices;

(1) wheels(2) crawler-type treads; or(3) belts.

2. A “trailer” designed for being towed by, but not for transporti ng, a vehicle described in 1. above.

However, “snowmobile” does not include any vehicle which is propelled by airplane type propellers or fans.

D. The term “your covered auto” is replaced by the term “your covered snowmobile.” “Your snowmobile” means:

1. Any snowmobile shown in the Schedule or in the Declarati ons.2. Any “snowmobile” on the date you become the owner. This provision applies

only if you:a. acquire the “snowmobile” during the policy period; andb. ask us to insure it within 30 days aft er you become the owner.

3. Any “snowmobile” you do not own while used as a temporary substi tute for any other “snowmobile” described in this defi niti on which is out of normal use because of its:a. breakdown;b. repair;c. servicing;d. loss; ore. destructi on

II. PART A - LIABILITY COVERAGE Part A is amended as follows with respect to a “snowmobile:”


1. You or any family member for the ownership, maintenance or use of any “snowmobile.”

54



COVERED PROPERTY COVERAGEWith respect to the coverage provided by this endorsement, the provisions of the policy apply unless modifi ed by this endorsement.

A. Exclusion 8. of Part D - Coverage for Damage to Your Auto does not apply to coverage provided by this endorsement.

B. We will pay for direct and accidental loss to “covered property” while it is in or att ached to the auto shown in the Schedule or in the Declarati ons for which a specifi c premium charge indicates that Covered Property Coverage is provided. Direct and accidental loss does not include any reducti on in the value of the “covered property” aft er it has been repaired, as compared to its value before it was damaged.

“Covered property” means awnings, cabanas or equipment designed to create additi onal living faciliti es.

C. We will not pay for:1. Loss to business or offi ce equipment. 2. Loss to arti cles which are sales samples or used in exhibiti ons.

D. With respect to coverage under this endorsement, the Limit of Liability of Part D is replaced by the following:

LIMIT OF LIABILITYOur limit of liability for loss will be the lesser of the:

1. Amount shown in the Schedule or in the Declarati ons;2. Actual cash value of the stolen or damaged property; or3. Amount necessary to repair or replace the property with other property of like kind

and quality. This amount does not include any reducti on in the value of the “covered property”

aft er it has been repaired, as compared to its value before it was damaged.Our payment for loss will be reduced by any applicable deducti ble shown in the Schedule or in the Declarati ons.

An adjustment for depreciati on and physical conditi on will be made in determining actual cash value at the ti me of loss.

Copyright, North Carolina Rate Bureau, 1990, 1996, 2003



SNOWMOBILE ENDORSEMENTThis coverage is subject to all the provisions of the policy with respect to the “snowmobiles” and coverages described in the Schedule or in the Declarati ons except as modifi ed as follows:

11

Subject to this limit for each person, the limit of bodily injury liability shown in the Declarati ons for each accident for Uninsured Motorists Coverage is our maximum limit of liability for all damages for bodily injury resulti ng from any one accident. The limit of property damage liability shown in the Declarati ons for each accident for Uninsured Motorist Coverage is our maximum limit of liability for all damages to all property resulti ng from any one accident. This is the most we will pay for bodily injury and property damage regardless of the number of:

1. Insureds;2. Claims made;3. Vehicles or premiums shown in the Declarati ons; or4. Vehicles involved in the accident.The limit of liability otherwise applicable under this coverage shall be reduced by all sums:

1. Paid because of the bodily injury or property damage by or on behalf of persons or organizati ons who may be legally responsible. This includes all sums paid under Part A;

2. Paid or payable because of the bodily injury under any workers’ compensati on law. However, this reducti on does not apply to the extent that an employer’s lien is required to be paid under North Carolina’s workers’ compensati on law; and

3. Paid or payable because of the bodily injury under any disability benefi ts law or any similar law.

No payment will be made for loss paid or payable to the insured under Part D or any policy of property insurance.

Any payment to any person under this coverage will reduce any amount that person is enti tled to recover for the same damages under Part A.

This coverage is excess over and shall not duplicate any amount paid or payable under Part B.

OTHER INSURANCEIf this policy and any other auto insurance policy apply to the same accident, the maximum amount payable under all applicable policies for injuries to an insured caused by an uninsured motor vehicle shall be the sum of the highest limit of liability for this coverage under each such policy.

In additi on, if there is other applicable similar insurance, we will pay only our share of the loss. Our share is the proporti on that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a vehicle you do not own shall be excess over any other collecti ble insurance.

OUR RIGHT TO RECOVER PAYMENTA. If we make a payment under this coverage and the person to or for whom payment

was made has a right to recover damages from another, we shall be subrogated to that right. Further, the executi on of a covenant not to enforce judgment by the injured party shall not preclude us from pursuing our right to sue for or otherwise recover any payment made under this coverage from anyone else who may be liable. The person to or for whom payment was made shall do:

1. Whatever is necessary to enable us to exercise our rights; and 2. Nothing aft er loss to prejudice them.


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54


















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12

B. If we make a payment under this coverage and the person to or for whom payment is made recovers damages from another, that person shall:1. Hold in trust for us the proceeds of the recovery; and2. Reimburse us to the extent of our payment.

ARBITRATIONIf we and an insured do not agree:

1. Whether that insured is legally enti tled to recover compensatory damages from the owner or driver of an uninsured motor vehicle; or

2. As to the amount of such damages; the insured may demand to sett le the dispute by arbitrati on. The following procedures will be used:

1. Each party will select a competent arbitrator. The two so selected will select a third. 2. If the third arbitrator is not selected within 30 days, the insured or we may request a

judge of a court of record to name one. The court must be in the county and state in which arbitrati on is pending.

3. Each party will pay its chosen arbitrator. Each will pay half of all other expenses of arbitrati on. Fees to lawyers and expert witnesses are not considered arbitrati on expenses and are to be paid by the party hiring these persons.

4. Unless the insured and we agree otherwise, arbitrati on will take place in the county and state in which the insured lives. Arbitrati on will be subject to the usual rules of procedure and evidence in such county and state. The arbitrators will resolve the issues. A writt en decision on which two arbitrators agree will be binding on the insured and us.

5. Any arbitrati on acti on against the Company must begin within the ti me limit allowed for bodily injury or death acti ons in the state where the accident occurred.

6. Judgment upon award may be entered in any proper court. 7. As an alternati ve, the insured and we may agree to arbitrate by rules other than stated

above.

PART C2 > COMBINED UNINSURED/UNDERINSURED MOTORISTS COVERAGEINSURING AGREEMENTWe will pay compensatory damages which an insured is legally enti tled to recover from the owner or operator of an uninsured motor vehicle because of:

1. Bodily injury sustained by an insured and caused by an accident; and2. Property damage caused by an accident. The owner’s or operator’s liability for these damages must arise out of the ownership,

maintenance or use of the uninsured motor vehicle. We will also pay compensatory damages which an insured is legally enti tled to recover

from the owner or operator of an underinsured motor vehicle because of bodily injury sustained by an insured and caused by an accident. The owner’s or operator’s liability for these damages must arise out of the ownership, maintenance or use of the underinsured motor vehicle. We will pay for these damages only aft er the limits of liability under any applicable liability bonds or policies have been exhausted by payments of judgments or sett lements, unless we:

53

in giving proof of loss is more than 1 year, unless the delay is caused by lack of legal capacity.

D. Time of Payment of Claims: Benefi ts payable under this coverage will be paid within 60 days aft er we receive due writt en proof of loss.

E. Payment of Claims: The Company will pay benefi ts to you or your estate if no benefi ciary has been designated. If any benefi t is payable to a payee who cannot execute a valid release, the Company may pay up to $1,000 of that benefi t to someone related to you by blood or marriage who the Company believes has a right to it. Payments made in good faith under this provision will fully discharge the Company to the extent of such payment.

F. Physical Examinati ons and Autopsy - We have the right to have you or any other covered person examined by a physician of our choice. Such examinati ons will be conducted at reasonable intervals at the expense of the Company. We can also require an autopsy where not prohibited by law.

G. Legal Acti on: No legal acti on shall be brought to recover under this coverage before 60 days aft er writt en proof of loss has been furnished to the Company. No legal acti on shall be brought to recover on this policy more than 3 years aft er writt en proof of loss has been furnished to the Company.



EXTENDED NON-OWNED COVERAGE FOR NAMED INDIVIDUAL

SCHEDULE

Name of Individual Premium

_________________

Liability $__________

Medical Payments $__________

Total Premium $__________

I. LIABILITY COVERAGEPart A is amended as follows with respect to the individual named in the Schedule and the spouse if a resident of the same household: Exclusions A.5., A.7., B.1 and B.2 do not apply.

II. MEDICAL PAYMENTS COVERAGEPart B is amended as follows if a premium is shown in the Schedule for Medical Payments with respect to the individual named in the Schedule and the spouse if a resident of the same household.

Exclusions 4. and 5. do not apply.

III. This endorsement does not aff ord coverage under Part A or Part B of the policy for any accident involving a vehicle owned by the individual named in the Schedule or by a member of the same household, or any accident involving a temporary substi tute vehicle for such owned vehicle.

Copyright, North Carolina Rate Bureau, 1980

52

PART 6 - AMBULANCE EXPENSE BENEFIT

If a covered person suff ers injuries as described in Part 2 and needs emergency ambulance service, the Company will pay the expense actually incurred for transportati on from the accident scene to the hospital, not to exceed the amount shown in the Schedule of Benefi ts.

PART 7 - DAILY INCOME FOR LOSS OF TIME BENEFITS

If a covered person suff ers injuries as described in Part 2 and is thereby totally disabled, the Company will pay this benefi t. “Total Disability” means being certi fi ed by a physician as being unable to perform all normal duti es of your work. The disability must begin within 10 days aft er the accident. The Company will pay the amount shown in the Schedule of Benefi ts for each day of “Total Disability.” Payment will not exceed a limit of fi ve days.

PART 8 - EXCLUSIONSA. Losses due to the following causes are not covered:

(1) intenti onally self-infl icted injuries (sane or insane); (2) any loss caused directly or indirectly by disease or bodily or mental infi rmity, or

medical or surgical treatment or diagnosti c procedure therefore; (3) voluntary asphyxiati on; (4) war (declared or undeclared or any act thereof); (5) driving in a race or speed contest.

B. No benefi ts are payable under this coverage for:(1) injuries received while operati ng a vehicle used to carry persons or property for

a fee, other than a share-the-expense car pool; (2) any treatment rendered in a Veteran’s Hospital; (3) any injury for which the insured is covered by Workers’ Compensati on; (4) treatment for injuries covered by Medicare or Medicaid; (5) any insured while working as an employee of an auto dealership, repair shop, service stati on, storage garage, or public parking place, if the injury or death arises out of the operati on thereof; (6) losses sustained or contracted while operati ng a motor vehicle aft er consuming alcoholic beverages, marijuana, narcoti cs or other intoxicants, or while riding as a passenger in a motor vehicle operated by a person aft er consuming alcoholic beverages, marijuana, narcoti cs or other intoxicati ng substances, unless administered on the advice of a physician.

PART 9 - GENERAL PROVISIONS

A. Noti ce of Claim: Writt en noti ce of claim must be given within 20 days aft er a loss or as soon as is reasonably possible. This noti ce by or for you should include your full name, date of birth, policy number and address. It should be sent to the Home Offi ce of the Company or given to our agent.

B. Claim Forms: When the Company gets noti ce of claim, it may send the claimant forms for fi ling proof of loss. If these are not sent within 15 days aft er the Company receives noti ce of claim, the insured may submit a writt en descripti on of the nature and extent of the loss for which claim is made. Such a writi ng must be submitt ed within the ti me required below.

C. Proof of Loss; Time Limits: The Company must be given writt en proof of loss: For loss of disability within 90 days aft er the end of the period for which the Company

is liable or, For any other loss, within 90 days from the date of loss. If proof is not given within such ti me, the claim will not be reduced or denied if it was

not reasonably possible to give proof within the required ti me and proof is given to the Company as soon as possible. In no case will the Company pay benefi ts if the delay

13

1. Have been given writt en noti ce in advance of sett lement between an insured and the owner or operator of the underinsured motor vehicle; and

2. Consent to advance payment to the insured in the amount equal to the tentati ve sett lement.

Any judgment for damages arising out of a suit is not binding on us unless we have been served with a copy of the summons, complaint or other process against the uninsured or underinsured motorist.

Insured as used in this Part means:


a. your covered auto; orb. any other auto operated by you.

3. Any person for damages that person is enti tled to recover because of bodily injury to which this coverage applies sustained by a person listed in 1. or 2. above.

Property damage as used in this Part means injury to or destructi on of:

1. Your covered auto.2. Any property owned by a person listed in 1. or 2 of insured.Underinsured motor vehicle means a land motor vehicle or trailer of any type:

1. The ownership, maintenance or use of which is insured or bonded for liability at the ti me of the accident; and

2. The sum of the limits of liability under all bodily injury liability bonds and insurance policies applicable at the ti me of the accident is equal to or greater than the minimum limit specifi ed by the fi nancial responsibility law of North Carolina; and:a. is less than the limit of liability for this coverage; orb. the total limit of liability available has been reduced to less than the limit of liability

for this coverage by payment of damages to other persons.However, underinsured motor vehicle does not include any vehicle or equipment:

1. Operated on rails or crawler treads.2. Which is a farm-type tractor or other vehicle designed for use principally off public

roads and while not upon public roads.3. While located for use as a residence or premises.4. Which is an uninsured motor vehicle.5. Which is insured under Liability Coverage of this policy if such policy’s limit of liability for

Combined Uninsured/Underinsured Motorists Coverage is equal to or less than its limit of liability for Liability Coverage.

Uninsured motor vehicle means a land motor vehicle or trailer of any type:


Vehicles;applies at the ti me of the accident.


12











above.





53









SCHEDULE


_________________









52
















13




















14



4. To which a liability bond or policy applies at the ti me of the accident, but the bonding or insuring company:a. denies coverage; orb. is or becomes insolvent.

However, uninsured motor vehicle does not include any vehicle or equipment:



a. The United States of America;b. Canada;c. a state; ord. an agency, other than a politi cal subdivision of a., b. or c above.

4. Operated on rails or crawler treads.5. Which is a farm type tractor or equipment designed mainly for use off public roads

while not on public roads.6. While located for use as a residence or premises. EXCLUSIONSA. We do not provide coverage for property damage or bodily injury caused by an

uninsured motor vehicle and sustained by any insured:1. If that insured or the legal representati ve sett les the bodily injury or property

damage claim without our writt en consent. 2. While occupying your covered auto while it is being used as a public or livery



insured as the result of any one accident.5. If the property is contained in or struck by a motor vehicle (other than your

covered auto) owned by you or any family member.6. For any puniti ve or exemplary damages, or legal costs related thereto.

51

spouse, and any unmarried child under the age 19 if the “Family Plan” is checked on the applicati on for this policy.

The term spouse does not include one who is divorced or separated. Separated means physically living apart regardless of whether a separati on agreement has been signed or decree of separati on entered. Child includes stepchildren and adopted children as long as they (children, stepchildren and adopted children) live in the named insured’s household.

PART 2 - INSURING CLAUSE

The Company will pay benefi ts as provided in Parts 3, 4, 5, 6 and 8 for loss due to bodily injury caused solely through accidental means directly, independently and exclusively of all other causes in the manner described below:

(a) Any injury suff ered by a covered person while riding in or on, getti ng in or out of a motor vehicle owned by the Insured; or

(b) Any injury suff ered by a covered person while riding in or on, getti ng in or out of, or being struck by any motor vehicle.

“Motor Vehicle,” as used in this endorsement, means private passenger vehicles, including but not limited to autos, stati on wagons, vans or pickup trucks duly licensed for use on public highways. All other vehicle types, including but not limited to commercial vehicles and motorcycles, are excluded.

PART 3 - DEATH, DISMEMBERMENT AND LOSS OF SIGHT BENEFIT

If, within 90 days of the accident, a covered person suff ers injuries as described in Part 2 which result in the losses listed below, the Company will pay the specifi ed amount of reach loss as shown below:

For Loss of Percent of Benefi t

Both Hands, Both Feet or Sight of Both Eyes 100%

One Hand and One Foot, One Hand and Sight

of One Eye or One Foot and Sight of One Eye 100%

Life 100%

One Hand or One Foot or Sight of One Eye 50%

Only one amount, the largest, will be paid for losses due to one accident. The loss of a hand or foot means the complete severance at or above the wrist or ankle. Loss of the sight of one eye means the total and unrecoverable loss of the enti re sight of that eye.

PART 4 - DAILY HOSPITAL INDEMNITY LOSS OF SIGHT BENEFIT

If a covered person suff ers injuries as described in Part 2 which require hospital confi nement, the Company will pay benefi ts as shown in the Schedule of Benefi ts. Such confi nement must begin within 10 days aft er the accident. Payments will begin with the fi rst day of the confi nement but not exceed fi ve days.

PART 5 - MEDICAL EXPENSE BENEFIT

If a covered person suff ers injuries as described in Part 2 and therefore needs medical treatment, we will pay this benefi t up to the maximum listed in the Schedule of Benefi ts. This part covers expenses for medical, surgical, Xray, hospital, professional nursing or dental services incurred within 90 days aft er the date of the accident.

50

B. Other Coverage Available If other alternati ve economic loss coverage applies:

1. The total limits of liability shall not exceed the highest limit of liability of any one of the coverages that applies; and

2. We are liable only for our share. Our share is that percent of the “economic loss benefi ts” that the limit of liability of this coverage bears to the total of all other alternati ve economic loss coverage applicable to the accident.

DUTIES AFTER AN ACCIDENT OR LOSS - FILING A CLAIMGeneral Duti es

We must be noti fi ed promptly of how, when and where the accident or loss happened. Noti ce should also include the names and addresses of any injured persons and of any witnesses.

A person seeking any coverage must:1. Cooperate with us in the investi gati on, sett lement or defense of any claim or suit.2. Promptly send us copies of any noti ces or legal papers received in connecti on with the

accident or loss.3. Submit as oft en as we reasonably require:

a. To physical exams by physicians we select. We will pay for these exams.b. To examinati on under oath and subscribe the same.

4. Authorize us to obtain:a. Medical reports; andb. Other perti nent records.

5. Submit a proof of loss when required by us.Additi onal Duti es For Alternati ve Economic Loss Coverage

A person seeking Alternati ve Economic Loss Coverage must also:

1. Promptly noti fy the police if a hit-and-run driver is involved.2. Promptly send us copies of the legal papers if a suit is brought. A suit may not be

brought by an “insured” unti l 60 days aft er that person noti fi es us of his or her belief that the prospecti ve defendant is an uninsured motorist.

39193 (Ed. 5-94)THIS ENDORSEMENT DOES NOT APPLY UNLESS THIS

FORM NUMBER IS LISTED UNDER THEFORMS SECTION ON THE DECLARATIONS PAGE

ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGE

This coverage is subject to all of the provisions of the policy except as modifi ed herein.

BENEFICIARY: Unless otherwise designated, the Named Insured shall be the benefi ciary of the other insured persons; the Named Insured’s benefi ciary shall be the Named Insured’s estate.

PART 1 - COVERED PERSONS

Coverage is provided under this endorsement for either: (A) the named insured if the “Individual Plan” is checked on the applicati on for this policy; or (B) the named insured,

15

7. While occupying, or when struck by, any motor vehicle owned by you or any family member which is not insured for this coverage under this policy. This includes a trailer of any type used with that vehicle.


B. We do not provide coverage for property damage caused by a hit-and-run vehicle whose operator or owner cannot be identi fi ed.

C. We do not provide coverage for bodily injury caused by an underinsured motor vehicle and sustained by any insured:1. If that insured or the legal representati ve sett les the bodily injury claim without

our consent. However, this exclusion does not apply if we:a. have been given writt en noti ce in advance of a sett lement between an

insured and the owner or operator of the underinsured motor vehicle; and

b. we fail to advance payment to the insured in an amount equal to the tentati ve sett lement within thirty days following receipt of such writt en noti ce.

2. While occupying your covered auto while it is being used as a public or livery conveyance. This exclusion does not apply to a share-the-expense car pool.

3. Using a vehicle without reasonable belief that that insured is enti tled to do so. This Exclusion C.3. does not apply to a family member using your covered auto

which is owned by you.4. For any puniti ve or exemplary damages, or legal costs related thereto.5. While occupying, or when struck by, any motor vehicle owned by you or any


However, this exclusion does not apply to you or any family member.D. This coverage shall not apply directly or indirectly to benefi t any insurer or self-insurer

under any of the following or any similar law:1. workers’ compensati on law; or2. disability benefi ts law.

LIMIT OF LIABILITYThe limit of bodily injury liability shown in the Declarati ons for each person for Combined Uninsured/Underinsured Motorists Coverage is our maximum limit of liability for all damages for bodily injury, including damages for care, loss of services or death, sustained by any one person in any one auto accident.

Subject to this limit for each person, the limit of bodily injury liability shown in the Declarati ons for each accident for Combined Uninsured/Underinsured Motorists Coverage is our maximum limit of liability for all damages for bodily injury resulti ng from any one accident. The limit of property damage liability shown in the Declarati ons for each accident for Combined Uninsured/Underinsured Motorists Coverage is our maximum limit of liability for all damages for property damage caused by an uninsured motor vehicle and resulti ng from any one accident.

This is the most we will pay for bodily injury and property damage regardless of the number of:

1. Insureds;


14
















51














Life 100%







50





















15

















1. Insureds;


16

2. Claims made;3. Vehicles or premiums shown in the Declarati ons; or4. Vehicles involved in the accident.The limits of bodily injury liability shown in the Declarati ons for each person and each accident for this coverage shall be reduced by all sums:

1. Paid because of the bodily injury by or on behalf of persons or organizati ons who may be legally responsible. This includes all sums paid under Part A;



The most we will pay for bodily injury damages to an insured under this coverage is the lesser of:

a. the limit of bodily injury liability shown in the Declarati ons for each person for this coverage reduced by all sums described in items 1., 2. and 3. of the preceding paragraph; or

b. the damages sustained by the insured for bodily injury reduced by all sums described in items 1., 2. and 3. in the preceding paragraph.

The limit of property damage liability under this coverage shall be reduced by all sums paid because of the property damage by or on behalf of persons or organizati ons who may be legally responsible. This includes all sums payable under Part A.





was made has a right to recover damages from another, we shall be subrogated to that right. Further, the executi on of a covenant not to enforce judgment by the injured party shall not preclude us from pursuing our right to sue for or otherwise recover any payment made under this coverage from anyone else who may be liable. The person to or for whom payment was made shall do:1. Whatever is necessary to enable us to exercise our rights; and2. Nothing aft er loss to prejudice them.

However, our rights under this paragraph do not apply against the owner or operator of an underinsured motor vehicle if we have been given writt en noti ce in advance of a sett lement and fail to advance payment in an amount equal to the tentati ve sett lement within 30 days following receipt of such noti ce.

B. If we make a payment under this coverage and the person to or for whom payment is made recovers damages from another, that person shall:1. Hold in trust for us the proceeds of the recovery; and

49

2. While “occupying” “your covered auto” when it is being used as a public or livery conveyance except for a share-the-expense car pool.

3. While using a vehicle without a reasonable belief that that person is enti tled to do so.

B. This coverage shall not apply to:1. Puniti ve or exemplary damages or legal costs related thereto.2. Pain, suff ering, inconvenience, physical impairment, emoti onal pain and suff ering,

hedonic damages, or loss of any of the following: earning capacity, consorti um, society, companionship, marital care, parental care, fi lial care, att enti on, advise, counsel, training, guidance, or educati on, and all the noneconomic damages sustained by an “insured.”

3. Any economic damages not included in “economic loss benefi ts.”LIMIT OF LIABILITYA. The limit of liability shown in the Schedule or in the Declarati ons for each person for

this coverage is the most we will pay for all benefi ts for any one person in any one auto accident. Subject to this limit for each person, the limit shown in the Schedule or in the Declarati ons for each accident for this coverage is our maximum limit of liability for all benefi ts resulti ng from any one accident, regardless of the number of:1. “Insureds;”2. Claims made;3. Vehicles or premiums shown in the Schedule or in the Declarati ons; or4. Vehicles involved in the accident.

B. The maximum amount payable under this coverage will be the lesser of:1. The total loss and expense which qualifi es for payment as “economic loss benefi ts”

under this endorsement minus any amount paid or payable to the insured:a. For damages because of “bodily injury” to an “insured,” by or for any person

or organizati on who is or may be held legally liable for the “bodily injury” (only the net amount received by the “insured” aft er payment of att orney fees will be subtracted from “economic loss benefi ts”);

b. For any damages because of “bodily injury” to an “insured” under any uninsured or underinsured motor vehicle coverage (only the net amount received by the “insured” aft er payment of att orney fees will be subtracted from “economic loss benefi ts”); and

c. Under any other coverage, plan or program under which the “insured” is enti tled to similar benefi ts including, but not limited to, health or disability insurance, self-funded health or disability plans, ERISA plans, Workers’ Compensati on and wage conti nuati on programs, but excluding death benefi ts paid under a life insurance policy; or

2. The limits of liability of this coverage.OTHER INSURANCEA. No Duplication of Benefi ts No “insured” shall recover more than once for the same expense or loss under this or

any other insurance.

48

c. THE PURCHASE OR RENTAL OF EQUIPMENT NOT PRIMARILY DESIGNED TO SERVE A MEDICAL PURPOSE.

Expenses are reasonable only if they are consistent with the usual fees charged by the majority of similar medical providers in the geographical area in which the expenses were incurred for the specifi c medical service.

Services are necessary only if the services are rendered by a licensed medical provider within the scope of the provider’s practi ce and license are essenti al in achieving maximum medical improvement for the “bodily injury” sustained in the accident.

We have the right to make or obtain a uti lizati on review of the medical expenses and services to determine if they are reasonable and necessary for the “bodily injury” sustained.

We will pay only those expenses incurred for services rendered within 5 years from the date of the accident.

2. Compensati on for lost earnings. Such compensati on shall be calculated based on the monthly income, aft er taxes, that the “insured” would have earned from gainful employment except for the injury. If the “insured” was unemployed at the ti me of the accident, compensati on shall be based on the employment compensati on benefi ts “the insured” would have received, but did not receive because of the “bodily injury.” Compensati on for lost earnings shall not exceed a maximum of $5,000 per month per insured.

3. Payment of up to $50 per day per insured, for a period not to exceed one year from the date of the accident causing injury, for expenses reasonably incurred in obtaining ordinary and necessary services in lieu of those the “insured” would have performed except for the injury. These services shall be only for the benefi t of the “insured” or his family, and cannot be obtained to produce income for the “insured.”

4. Payment of a death benefi t in an amount equal to the greater of $5,000 or 15% of the per person limit of liability for this coverage part shown in the Declarati ons if the death of one or more “insureds” is proximately and directly caused by an accident to which this coverage applies. In the event that one accident causes the death of two or more “insureds,” this benefi t shall be divided equally between each “insured.” In the event an “insured dies, all benefi ts under C.1., C.2. and C.3 will terminate for that “insured.”

INSURING AGREEMENTWe will pay “economic loss benefi ts,” subject to the limit of liability determined below, an “insured” is legally enti tled to recover from the owner or operator of an “uninsured motor vehicle” because of “bodily injury:”

1. Sustained by an “insured;” and2. Caused by an accident.The owner or operator’s liability for these economic loss benefi ts must arise out of the ownership, maintenance, or use of the “uninsured motor vehicle.”

There is no coverage unti l the limits of liability of all “bodily injury” liability bonds and insurance policies that apply have been used up by payment of judgments or sett lements.

EXCLUSIONSA. “Economic loss benefi ts” are not payable to an “insured” for “bodily injury” sustained:

1. While “occupying” or when struck by any motor vehicle owned by you or any “family member” which is not insured for this coverage under this policy. This includes a trailer of any type used with that vehicle.

17

2. Reimburse us to the extent of our payment. OTHER INSURANCEIf this policy and any other auto insurance policy issued to you apply to the same accident, the maximum amount payable under all applicable policies for all injuries to an insured caused by an uninsured motor vehicle or underinsured motor vehicle shall be the sum of the highest limit of liability for this coverage under each policy.

In additi on, if there is other applicable similar insurance, we will pay only our share of the loss. Our loss is the proporti on that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a vehicle you do not own shall be excess over any other collecti ble insurance.


1. Whether that insured is legally enti tled to recover compensatory damages from the owner or driver of an uninsured motor vehicle or underinsured motor vehicle; or

2. As to the amount of such damages: the insured may demand to sett le the dispute by arbitrati on. The following procedures will be used:






6. Judgment upon award may be entered in any proper court.7. As an alternati ve, the insured and we may agree to arbitrate by rules other than stated

above.

PART D > COVERAGE FOR DAMAGE TO YOUR AUTOINSURING AGREEMENTWe will pay for direct and accidental loss to your covered auto or any non-owned auto, including its equipment. Direct and accidental loss does not include any reducti on in the value of any vehicle aft er it has been repaired, as compared to its value before it was damaged.

We will pay for loss to your covered auto caused by:

1. Other than collision only if the Declarati ons indicate that Other Than Collision Coverage is provided for that auto.


16
















49














48














17












above.





18

2. Collision only if the Declarati ons indicate that Collision Coverage is provided for that auto.

If there is a loss to a non-owned auto, we will provide the broadest coverage applicable to any your covered auto shown in the Declarati ons.

Our payment will be reduced by any deducti ble shown in the Declarati ons. The deducti ble will not apply to a loss caused by:

a. fi re or lightning;b. smoke due to a sudden, unusual and faulty operati on of any fi xed heati ng

equipment serving the premises in which the auto is stored;c. the stranding, sinking, burning, collision, or derailment of any conveyance in or on

which the auto is being transported;“Collision” means the upset of your covered auto or a non-owned auto or its impact with another vehicle or object.

Loss caused by the following is considered other than collision.

1. Missiles or falling objects;2. Fire;3. Theft or larceny;4. Explosion or earthquake;5. Windstorm;6. Hail, water or fl ood;7. Malicious mischief or vandalism;8. Riot or civil commoti on;9. Contact with bird or animal; or10. Breakage of glass.If loss is caused by contact with a bird or animal, or if breakage of glass is caused by collision, you may elect to have either loss considered to be caused by collision.

“Non-owned auto” means:

1. Any private passenger auto, stati on wagon type, pickup truck, van or trailer not owned by or furnished or available for the regular use of you or any family member while in the custody of or being operated by you or any family member.

2. Any auto or trailer you do not own while used as a temporary substi tute for your covered auto which is out of normal use because of its:a. breakdown;b. repair;c. servicing;d. loss; ore. destructi on.

We will also pay for direct and accidental loss caused by fi re or lightning to clothes or other personal eff ects:

1. which are owned by you or any family member; and2. which are in or on your covered auto.

47

a. You or any “family member;” orb. A vehicle which you or any “family member” are occupying.”

4. To which a liability bond or policy applies at the ti me of the accident but the bonding or insuring company:a. Denies coverage; orb. Is or becomes insolvent.

5. To which the sum of the limits of liability under all “bodily injury” liability bonds and insurance policies applicable at the ti me of the accident is:a. Equal to or greater than the minimum limit specifi ed by the fi nancial

responsibility law of North Carolina; andb. Less than the limit of liability for this coverage.

However, “uninsured motor vehicle” does not include any vehicle or equipment;1. Owned by you.2. Owned or operated by a self-insurer under an applicable motor vehicle law; except

a self-insurer which is or becomes insolvent.3. Owned by:

a. The United States of America;b. Canada;c. A state; ord. An agency, other than a politi cal subdivision of a., b. or c. above.

4. Operated on rails or crawler treads.5. Which is a farm-type tractor or equipment designed mainly for use off public

roads while not on public roads.6. While located for use as a residence or premises.

C. “Economic loss benefi ts” consist of the following:1. Reasonable and customary charges for necessary medical, hospital, dental,

surgical, medicine, X-ray, ambulance, emergency medical, prescripti on drugs, prostheti c services, nursing services, and any nonmedical remedial care and treatment rendered in accordance with a religious method of healing if recognized by applicable state law.

REASONABLE AND CUSTOMARY CHARGES DO NOT INCLUDE EXPENSES:

1. FOR TREATMENT, SERVICES, PRODUCTS OR PROCEDURES THAT ARE:a. EXPERIMENTAL IN NATURE, FOR RESEARCH, OR NOT PRIMARILY DESIGNED TO

SERVE A MEDICAL PURPOSE; ORb. NOT COMMONLY AND CUSTOMA-RILY RECOGNIZED THROUGHOUT THE

MEDICAL PROFESSION AND WITHIN THE UNITED STATES AS APPROPRIATE FOR THE TREATMENT OF THE “BODILY INJURY;” OR

2. INCURRED FOR:a. THE USE OF THERMOGRAPHY OR OTHER RELATEDPROCEDURES OF A SIMILAR

NATURE; ORb. THE USE OF ACUPUNCTURE OR OTHER RELATED PROCEDURES OF A SIMILAR

NATURE; OR

46

PART F - GENERAL PROVISIONS:SPOUSE ACCESS

The named insured and we agree that the named insured and resident spouse are “customers” for purposes of state and federal privacy laws. The resident spouse will have access to the same informati on available to the named insured.

The named insured may noti fy us that he/she no longer agrees that the resident spouse shall be treated as a “customer” for purposes of state and federal privacy laws, and we will not permit the resident spouse to access policy informati on.


6915 (01/05)

NC 03 80 (Ed. 1-98)THIS ENDORSEMENT DOES NOT APPLY UNLESS

THIS FORM NUMBEr IS LISTED UNDER THE FORMS SECTION ON THE DECLARATIONS PAGE

ALTERNATIVE ECONOMIC LOSS COVERAGENORTH CAROLINA

SCHEDULE (Entries may be left blank if shown elsewhere in this policy for this coverage).

Limit of Liability Premium

$_______________ each person

$_______________ each accident $________________

All conditi ons and provisions of this policy apply except as modifi ed by this endorsement.

DEFINITIONSA. “Insured” means:

1. You or any “family member:”2. Any other person “occupying:”

a. “Your covered auto,” orb. Any other auto operated by you.

3. Any person who is legally enti tled to recover “economic loss benefi ts” because of “bodily Injury” to which this coverage applies sustained by a person described in 1. or 2. above.

B. “Uninsured motor vehicle” means a land motor vehicle or trailer of any type:1. To which neither:

a. A liability bond or policy; norb. Cash or securiti es on fi le with the North Carolina Commissioner of Motor

Vehicles; applies at the ti me of the accident. 2. To which a liability bond or policy applies at the ti me of the accident, provided

its limit of liability is less than the minimum limit specifi ed by the fi nancial responsibility law of North Carolina.

3. Which is a hit-and-run vehicle whose owner or operator cannot be identi fi ed, and which hits:

19

“Permanently installed” means installed by bolts, brackets, or welding in a locati on in accordance with applicable laws and regulati ons for the installati on of such equipment or device.

TRANSPORTATION EXPENSESIn additi on, we will pay, without applicati on of a deducti ble, up to $15 per day, to a maximum of $450, for:

1. Transportati on expenses incurred by you in the event of a total theft of your covered auto. This applies only if the Declarati ons indicate that Other Than Collision is provided for that auto.

2. Loss of use expenses for which you become legally responsible in the event of the total theft of a non-owned auto. This applies only if the Declarati ons indicate that Other Than Collision is provided for any your covered auto.

We will pay only expenses incurred during the period:

1. Beginning 48 hours aft er the theft ; and2. Ending when your covered auto or the non-owned auto is returned to use or we pay

for its loss.SALVAGE CHARGESIn additi on, we will pay general average and salvage charges that you or any family member are legally responsible for in transporti ng an auto.

EXCLUSIONSWe will not pay for:

1. Loss to your covered auto or any non-owned auto which occurs while it is being used as a public or livery conveyance. This exclusion does not apply to a share-the-expense car pool.

2. Damage due and confi ned to:a. wear and tear;b. freezing;c. mechanical or electrical breakdown or failure; ord. road damage to ti res.

This exclusion does not apply if the damage results from the total theft of your covered auto or any non-owned auto.

3. Loss due to or as a consequence of:a. radioacti ve contaminati on;b. war (declared or undeclared);c. civil war;d. insurrecti on; ore. rebellion or revoluti on.

4. Loss to:a. any electronic equipment or device that records, emits, amplifi es, receives or

transmits audio, visual, or data signals, including, but not limited to:(1) radios and stereos;(2) tape decks;


18














47


















NATURE; OR

46





6915 (01/05)






$_______________ each person

$_______________ each accident $________________











19
















20

(3) compact disc players or recorders;(4) citi zens band radios;(5) telephones;(6) two-way mobile radios;(7) scanning monitor receivers;(8) television monitor receivers;(9) video cassett e players or recorders;(10) audio cassett e players or recorders; (11) personal computers; or(12) digital video disc player or recorder.

b. tapes, records, discs, or other media used with any equipment or device described in a.

c. any accessories used with equipment described in a. Exclusions 4.a. and 4.c. do not apply to:

a. any equipment or device that is permanently installed by the vehicle’s manufacturer; or

b. the fi rst $1,000 of any equipment or device that is permanently installed by other than the vehicle’s manufacturer;

in any your covered auto or a non-owned auto.5. Loss to a camper body or trailer you own which is not shown in the Declarati ons. This

exclusion (5.) does not apply to a camper or trailer you:a. acquire during the policy period; andb. ask us to insure within the policy period or within 30 days aft er you become the

owner.6. Loss to any non-owned auto while used by you or any family member in the business

of:a. selling;b. repairing;c. servicing;d. storing; ore. parking.

vehicles designed for use mainly on public highways. This includes road testi ng and delivery.

7. Loss to any non-owned auto if used without the express or implied permission of the owner or other person in lawful possession of such vehicle.

8. With respect to any trailer shown in the Declarati ons, loss to:a. awnings or cabanas; orb. equipment designed to create additi onal living faciliti es.

9. Loss to your covered auto or any non-owned auto due to a forfeiture ordered by the courts or destructi on or confi scati on by governmental or civil authoriti es because you or any family member:a. engaged in illegal acti viti es; or

45

C. Family member is changed to read: Family member means a person related to a designee by blood, marriage or

adopti on who is a resident of the household of that designee. This includes a ward or foster child.

II. LIABILITY COVERAGE Part A is amended as follows: The defi niti on of insured is replaced by the following: Insured as used in this part means:

1. You for the ownership, maintenance, or use of your covered auto.2. A designee for the use of any auto or trailer.3. Any person using your covered auto.4. For your covered auto, any person or organizati on but only with respect to legal


5. For any auto or trailer, other than your covered auto, any person or organizati on but only with respect to legal responsibility for acts or omissions of the designee for whom coverage is aff orded under this Part. This provision applies only if the person or organizati on does not own or hire the auto or trailer.

III. COVERAGE FOR DAMAGE TO YOUR AUTO Part D is amended as follows: The defi niti on of non-owned auto is replaced by the following: Non-owned auto means:

1. Any private passenger auto, stati on wagon type, pickup truck, van or trailer not owned by or furnished or available for the regular use of you or any family member while in the custody of or being operated by a designee or any family member.



1844 (05012008)

NC 03 50 (Ed. 09-04)AMENDMENT OF POLICY PROVISIONS

SPOUSE ACCESSThe coverage provided by this endorsement is subject to all provisions of the policy and its endorsements which are not modifi ed by this endorsement.

The following SPOUSE ACCESS provision is added to

44

3. For your covered auto, any person or organization, but only with respect to legal responsibility for acts or omissions of a person for whom cover-age is afforded under this Part.

4. For any auto or trailer, other than your covered auto any person or orga-nization, but only with respect to legal responsibility for acts or omis-sions of an insured described in 1. above for whom coverage is afforded under this Part. This provision applies only if the person or organization does not own or hire the auto or trailer.

II. COVERAGE FOR DAMAGE TO YOUR AUTO The fi rst paragraph of the Insuring Agreement of Part D is replaced by the following: We will pay for direct and accidental loss to:

1. your covered auto; or2. any non-owned auto while all named insureds reside in the same household

including their equipment. Direct and accidental loss does not include any reducti on in the value of any vehicle

aft er it has been repaired, as compared to its value before it was damaged.Copyright, North Carolina Rate Bureau, 2008

1843 (05012008)

NC 03 28 05 08THIS ENDORSEMENT DOES NOT APPLY UNLESS


BUSINESS NAMED INSURED ENDORSEMENTNORTH CAROLINA PERSONAL AUTO POLICY

Designee Title

No Designee

This endorsement is a part of the policy. Except for the changes this endorsement makes, all other provisions of the policy remain the same and apply to this endorsement.


A. The reference to “you” and “your” is changed to read: Throughout this policy, “you” and “your” refer to:

1. the “named insured” shown in the Declarati ons; and2. a designee if one is shown in the Schedule or Declarati ons.

B. The following is added: Designee means:

1. the person whose name is shown as a designee in the Schedule or Declarati ons; and

2. the spouse of the person described in 1. above if a resident of the same household

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b. failed to comply with Environmental Protecti on Agency or Department of Transportati on standards.

This exclusion does not apply to the interests of Loss Payees in your covered auto. 10. Loss to equipment designed or used to detect or deter radar, laser or other speed

monitoring equipment whether or not permanently installed.11. Loss to any non-owned auto being maintained or used by any person while employed

or otherwise engaged in any business not described in Exclusion 6. This exclusion does not apply to the maintenance or use by you or any family member of a non-owned auto which is a private passenger auto or trailer.

12. Loss to any custom furnishings or equipment in or upon any your covered auto or a non-owned auto including, but not limited to:a. special carpeti ng and insulati on, furniture or bars;b. faciliti es for cooking and sleeping;c. height extending roofs or ladders;d. custom windows, murals, painti ngs or other decals or graphics;e. tool boxes and fi ft h wheel conversions;f. side exhausts and headers;g. winches and roll bars;h. special wheels/ti res; ori. body or suspension alterati ons.

However, this exclusion (12.):a. does not apply to the fi rst $1,000 of any such custom furnishings or equipment;

andb. does not apply to a camper body shown in the Declarati ons, or a cap, cover or

bedliner in or upon any pickup truck you own. 13. Loss to, or loss of use of, a non-owned auto rented by:

a. you; orb. any family member:

if a rental vehicle company is precluded from recovering such loss or loss of use, from you or that family member, pursuant to the provisions of any applicable rental agreement or state law.

LIMIT OF LIABILITYOur limit of liability will be the lesser of the:

1. Actual cash value of the stolen or damaged property;2. Amount necessary to repair or replace the property with other property of like kind

and quality. This amount does not include any reducti on in the value of the property aft er it has

been repaired, as compared to its value before it was damaged. Subject to the above, our limit of liability for loss to:1. Personal eff ects is $100; and2. A trailer not owned by you is $1,500.


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1844 (05012008)




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1843 (05012008)




Designee Title

No Designee








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PAYMENT OF LOSSWe may pay for the loss in money or repair or replace the damaged or stolen property. We may, at our expense, return any stolen property to:

a. You; orb. The address shown in this policy. If we return stolen property, we will pay for any

damage resulti ng from the theft . We may keep all or part of the property at an agreed or appraised value. �IN THE REPAIR OF YOUR COVERED AUTO UNDER THE PHYSICAL DAMAGE COVERAGE PROVISIONS OF THIS POLICY, WE MAY REQUIRE OR SPECIFY THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER. THESE PARTS ARE REQUIRED TO BE AT LEAST EQUAL IN TERMS OF FIT, QUALITY, PERFORMANCE AND WARRANTY TO THE ORIGINAL MANUFACTURER PARTS THEY REPLACE.]

NO BENEFIT TO BAILEEThis insurance shall not directly or indirectly benefi t any carrier or other bailee for hire.

OTHER INSURANCEIf other insurance also covers the loss, we will pay only our share of the loss. Our share is the proporti on that our limit of liability bears to the total of all applicable limits. However, any insurance we provide with respect to a non-owned auto shall be excess over any other collecti ble insurance.

APPRAISALIf we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their diff erences to the umpire. A decision agreed to by any two will be binding. Each party will:

1. Pay its chosen appraiser; and2. Bear the expenses of the appraisal and umpire equally.We do not waive any of our rights under this policy by agreeing to an appraisal.

LOSS PAYEEIf a Loss Payee is shown in the Declarati ons, then any Collision Coverage or Other Than Collision Coverage provided by this policy applies to the Loss Payee’s interest in your covered auto. If Collision Coverage or Other Than Collision Coverage is cancelled or nonrenewed, we will provide coverage for the Loss Payee’s interest unti l 10 days aft er the date we mail or electronically transmit a noti ce of the cancellati on or nonrenewal to the Loss Payee. Any coverage for the Loss Payee’s interest shall terminate on the earlier of the expirati on of this 10 day period or the eff ecti ve date of a policy or insurance binder for similar coverage for the Loss Payee’s interest issued by another insurance carrier. Except for any conti nuati on of coverage for the Loss Payee’s interest that may be provided under this paragraph in connecti on with the Loss Payee’s right to noti ce of cancellati on or nonrenewal, this coverage for the Loss Payee’s interest is only provided for a loss that would otherwise be payable to you.

Notwithstanding any other provisions of this policy, including but not limited to any conti nuati on of coverage for the Loss Payee’s interest as set forth above, if Collision Coverage or Other Than Collision Coverage is rescinded, the Loss Payee’s interest will not be protected

43

2. Any person using your covered auto.3. For your covered auto, any person or organizati on but only with respect to

legal responsibility for acts or omissions of a person for whomcoverage is aff orded under this Part.

B. The Exclusions Secti on is amended as follows: The following exclusion applies under Part A to any vehicle for which the Schedule

or Declarati ons indicates that the passenger hazard is excluded: We do not provide Liability Coverage for any insured for bodily injury to any

person while occupying the described miscellaneous type vehicle. III. MEDICAL PAYMENTS COVERAGE Part B, Medical Payments Coverage, is amended as follows: If your covered auto is a motorcycle and the Schedule or Declarati ons of this policy

indicate Medical Payments Coverage is in eff ect for it, Part B, Exclusion 11. does not apply.

IV. COVERAGE FOR DAMAGE TO YOUR AUTO The Insuring Agreement of Part D is replaced by the following: We will pay for direct and accidental loss to your covered auto including its equipment.

Direct and accidental loss does not include any reducti on in the value of any vehicle aft er it has been repaired, as compared to its value before it was damaged. We will pay for loss to your covered auto caused by:1. Other than collision only if the Schedule or Declarati ons indicate that Other

than Collision coverage is provided for that vehicle.2. Collision only if the Schedule or Declarati ons indicate that Collision coverage is

provided for that vehicle.Our payment will be reduced by any deducti ble shown in the Schedule or Declarati ons.

Copyright, North Carolina Rate Bureau 1980, 1987, 1990, 1996, 1998, 1999, 2003, 2005, 2008



JOINT OWNERSHIP ENDORSEMENTNORTH CAROLINA PERSONAL AUTO POLICY

This Endorsement amends the Policy as follows:I. LIABILITY COVERAGE

Part A is amended as follows: The defi nition of insured is replaced by the following: Insured as used in this Part means:

1. You or any family member while all named insureds reside in the same household, for the ownership, maintenance or use of any auto or trailer.

2. Any person using your covered auto.

42

4. To which a liability bond or policy applies at the ti me of the accident but the bonding or insuring companya. denies coverage; orb. is or becomes insolvent.


NC 03 23 (Ed. 05-08)THIS ENDORSEMENT CHANGES THE POLICY. PLEASE

READ IT CAREFULLY.

MISCELLANEOUS TYPE VEHICLE ENDORSEMENTWith respect to the miscellaneous type vehicles and coverages described in the Schedule or Declarati ons, the provisions of the policy apply unless modifi ed by this endorsement.


A. For the purpose of the coverage provided by this endorsement, miscellaneous type vehicle means a motorcycle, golfcart or other similar type vehicle and a snowmobile.

B. The defi niti on of your covered auto is replaced by the following: Your covered auto means:

1. Any miscellaneous type vehicle shown in the Schedule or Declarati ons.2. A newly acquired auto.3. Any trailer you own that is designed to be pulled by any miscellaneous type

vehicle shown in the Schedule or Declarati ons. 4. Any miscellaneous type vehicle of the same type shown in the Schedule

or Declarati ons that you do not own while used as a temporary substi tute for a vehicle described in 1. or 2. of this defi niti on which is out of normal use because of its:a. breakdown;b. repair;c. servicing;d. loss; ore. destructi on.

C. The fi rst paragraph of the defi niti on of newly acquired auto is replaced by the following:

Newly acquired auto means any miscellaneous type vehicle of the same type shown in the Schedule or Declarati ons that you become the owner of during the policy period.

II. LIABILITY COVERAGE Part A is amended as follows:

A. The defi niti on of insured is replaced by the following: Insured means:

1. You or any family member for the ownership, maintenance or use of your covered auto.

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and the Loss Payee shall have no rights greater than your rights to recover for a loss.

If we pay you or the Loss Payee, then we are enti tled to your and the Loss Payee’s rights of recovery to the extent of our payment. Our right of recovery does not impair the Loss Payee’s right to recover the full amount of its claim from you.

PART E > DUTIES AFTER AN ACCIDENT OR LOSS - FILING A CLAIMGENERAL DUTIESWe must be noti fi ed promptly of how, when and where the accident or loss happened. Noti ce should also include the names and addresses of any injured persons and of any witnesses.

A person seeking any coverage must:

1. Cooperate with us in the investi gati on, sett lement or defense of any claim or suit.2. Promptly send us copies of any noti ces or legal papers received in connecti on with the


a. to physical exams by physicians we select. We will pay for these exams.b. to examinati ons under oath and subscribe the same.

4. Authorize us to obtain:a. medical reports; andb. other perti nent records.

5. Submit a proof of loss when required by us.ADDITIONAL DUTIES FOR UNINSURED AND COMBINED UNINSURED/UNDERINSURED MOTORISTS COVERAGE

A person seeking Uninsured or Combined Uninsured/Underinsured Motorist Coverage must also:


brought by an insured unti l 60 days aft er that person noti fi es us of his or her belief that the prospecti ve defendant is an uninsured motorist.

Any person who intends to pursue recovery against the owner or operator of an underinsured motor vehicle for damages beyond those paid or payable under this policy shall give us:

1. Noti ce of such intent; and2. The opportunity to parti cipate, at our expense, in the prosecuti on of such claim. ADDITIONAL DUTIES FOR COVERAGE FOR DAMAGE TO YOUR AUTOA person seeking Coverage For Damage To Your Auto must also:

1. Take reasonable steps aft er loss to protect your covered auto or any non-owned auto and its equipment from further loss. We will pay reasonable expenses incurred to do this.

2. Promptly noti fy the police if your covered auto or any non-owned auto is stolen. 3. Permit us to inspect and appraise the damaged property before its repair or disposal.


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READ IT CAREFULLY.













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PART F > GENERAL PROVISIONSBANKRUPTCYBankruptcy or insolvency of the insured shall not relieve us of any obligati ons under this policy.

CHANGESThe premium for each of your covered autos is based on informati on we have received from you or other sources. You agree:

1. That if any of this informati on material to the development of the policy premium is incorrect, incomplete or changed, we may adjust the premium accordingly during the policy period.

2. To cooperate with us in determining if this informati on is correct and complete, and to advise us of any changes in this informati on.

Any adjustment of your premium will be made using the rules in eff ect at the ti me of the change.

Premium adjustment may be made as the result of a change in:

1. Autos insured by the policy, including changes in use.2. Drivers.3. Coverages or coverage limits.4. Rati ng territory.5. Eligibility for discounts or other premium credits.We may revise your policy coverages to provide more protecti on without additi onal premium charge. If we do this and you have the coverage which is changed, your policy will automati cally provide the additi onal coverage as of the date the revision is eff ecti ve in North Carolina. Otherwise, this policy contains all of the coverage agreements between you and us. Its terms may not be changed or waived except by an endorsement issued by us.

FRAUD OR MATERIAL MISREPRESENTATIONWe do not provide coverage for any insured

1. who has made a fraudulent statement or engaged in fraudulent conduct in connecti on with any accident or loss for which coverage is sought under this policy.; or

2. if a named insured made a material misrepresentati on in the applicati on for this policy of insurance.

This provision applies to Part A - Liability Coverage to the extent that the limits of liability exceed the minimum limits required by the Financial Responsibility Law of North Carolina. If we make payment under Part A – Liability Coverage which we would not have otherwise made in the absence of the preceding sentence, then we shall have the right to recover such payment from any insured who made a fraudulent statement, engaged in fraudulent conduct, or made a material misrepresentati on.

LEGAL ACTION AGAINST USNo legal acti on may be brought against us unti l there has been full compliance with all the terms of this policy. In additi on, under Part A, no legal acti on may be brought against us unti l:

1. We agree in writi ng that the insured has an obligati on to pay; or2. The amount of that obligati on has been fi nally determined by judgment aft er trial.

41

a. a liability bond or policy; norb. cash or securiti es on fi le with the North Carolina Commissioner of Motor

Vehicles; applies at the ti me of the accident.2. To which a liability bond or policy applies at the ti me of the accident provided

its limit for liability is less than the minimum limit specifi ed by the fi nancial responsibility law of North Carolina.

3. Which, with respect to damages for bodily injury only, is a hit-and-run vehicle whose operator or owner cannot be identi fi ed and which hits:a. you;b. a vehicle which you are occupying; orc. your covered auto.


V. COMBINED UNINSURED / UNDERINSURED MOTORISTS COVERAGE Part C2 is amended as follows:


1. You.2. Any other person occupying your covered auto.3. Any person for damages that person is enti tled to recover because of bodily

injury to which this coverage applies sustained by a person described in 1. or 2. above.

B. The fi rst paragraph of the defi niti on of uninsured motor vehicle is replaced by the following:

Uninsured motor vehicle means a land motor vehicle or trailer of any type:1. To which neither:


Vehicles; applies at the ti me of the accident.2. To which a liability bond or policy applies at the ti me of the accident; provided



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OUT OF STATE COVERAGE If an auto accident to which this policy applies occurs in any state or province other

than where you reside, we will interpret your policy for that accident as follows: If the state or province has:1. A fi nancial responsibility or similar law specifying limits of liability for bodily

injury or property damage higher than the limit shown in the Schedule or in the Declarati ons, your policy will provide the higher specifi ed limit.

2. A compulsory insurance or similar law requiring a nonresident to maintain insurance whenever the nonresident uses a vehicle in that state or province, your policy will provide at least the required amounts and types of coverage.

No one will be entitled to duplicate payments for the same elements of loss.

III. MEDICAL PAYMENTS COVERAGE Part B is amended as follows


1. You:(a) while occupying or(b) as a pedestrian when struck by: a motor vehicle designed for use mainly on public roads or a trailer of

any type.2. Any other person while occupying your covered auto.

B. The Exclusions Secti on is amended as follows:1. Exclusion 4. is replaced by the following: Sustained while occupying, or when struck by, any vehicle (other than your

covered auto) which is owned by you.2. Exclusions 3., 8. and 9. are replaced by the following: Sustained while occupying any vehicle used in the business of that insured.

This exclusion does not apply to a vehicle you are operati ng or occupying. IV. UNINSURED MOTORISTS COVERAGE Part C is amended as follows:

A. The defi niti on of insured is replaced by the following:Insured means:1. You.2. Any other person occupying your covered auto.3. Any person for damages that person is enti tled to recover because of bodily




25

No person or organizati on has any right under this policy to bring us into any acti on to determine the liability of an insured.

OUR RIGHT TO RECOVER PAYMENTA. If we make a payment under this policy and the person to or for whom payment was

made has a right to recover damages from another, we shall be subrogated to that right. That person shall do:1. Whatever is necessary to enable us to exercise our rights; and2. Nothing aft er loss to prejudice them.However, our rights under this paragraph do not apply to:1. Part B.2. Parts C1 and C2, as those parts contain separate provisions which state our right to

recover payment under those Parts;3. Part D, against any person using your covered auto with a reasonable belief that

that person is enti tled to do so. B. If we make a payment under this policy and the person to or for whom payment is

made recovers damages from another, that person shall:1. Hold in trust for us the proceeds of the recovery; and2. Reimburse us to the extent of our payment.However, our rights under this paragraph do not apply to Part B.

POLICY PERIOD AND TERRITORYThis policy applies only to accidents and losses which occur:

1. During the policy period as shown in the Declarati ons; and2. Within the policy territory. The policy territory is:

1. The United States of America, its territories or possessions;2. Puerto Rico; or3. CanadaThis policy also applies to loss to, or accidents involving, your covered auto while being transported between their ports.

TERMINATION - CANCELLATION, NONRENEWAL, AUTOMATIC TERMINATION, OTHER TERMINATION PROVISIONSCancellation. This policy may be canceled during the policy period as follows:

1. The named insured shown in the Declarati ons may cancel by:a. returning this policy to us; orb. giving us advance writt en noti ce of the date cancellati on is to take eff ect.

2. We may cancel the Liability, Medical Payments and Uninsured Motorists or Combined Uninsured/Underinsured Motorists Coverages by mailing by fi rst class mail to the named insured shown in the Declarati ons at the last known address:a. at least 15 days noti ce if cancellati on is for nonpayment of premium; orb. at least 60 days noti ce in all other cases.


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3. We may cancel any coverage other than Liability, Medical Payments and Uninsured Motorists or Combined Uninsured/Underinsured Motorists Coverages by mailing to the named insured shown in the Declarati ons at the last known address 10 days noti ce.

4. We will cancel the Liability, Medical Payments and Uninsured Motorists or Combined Uninsured/Underinsured Motorists Coverages only for the following reasons:a. Nonpayment of premiums;b. You become a nonresident of North Carolina and are not otherwise enti tled to

insurance through the Reinsurance Facility on submission of new applicati on. c. The terminati on of our contract with the agent through whom this policy was

writt en. This does not apply if we terminate the contract because of the quality of the agent’s insureds.

d. The cancellati on of this policy pursuant to a power of att orney given to a company licensed pursuant to the provisions of G.S. 58-35-5.

e. You fail, at ti me of renewal, to meet the requirements of our corporate charter, arti cles of incorporati on or by-laws, if we are organized for the sole purpose of providing members with insurance policies in North Carolina.

f. If you knowingly make a material misrepresentati on of:(1.) the years of driving experience; or(2.) the driving record of

you or any other driver who lives with you and customarily uses your covered auto.

Nonrenewal. If we decide not to renew or conti nue the Liability, Medical Payments and Uninsured Motorists or Combined Uninsured/Underinsured Motorists Coverages of this policy, we will mail noti ce to the named insured shown in the Declarati ons at the last known address. Noti ce will be mailed at least 60 days before the end of the policy period. If we decide not to renew or conti nue any other coverage, we will mail the noti ce at least 10 days before the end of the policy period. We will refuse to renew or conti nue this policy only as permitt ed by the laws of North Carolina.

Automatic Termination. If we off er to renew or conti nue and you or your representati ve do not accept, this policy will automati cally terminate at the end of the current policy period. Failure to pay the required renewal or conti nuati on premium when due shall mean that you have not accepted our off er.

If you obtain other insurance on your covered auto, any similar insurance provided by this policy will terminate as to that auto on the eff ecti ve of the other insurance.

Other Termination Provisions.

1. If the law in eff ect in North Carolina at the ti me this policy is issued, renewed or conti nued:a. requires a longer noti ce period;b. requires a special form of or procedure for giving noti ce; orc. modifi es any of the stated terminati on reasons;we will comply with those requirements.

2. Proof of mailing of any noti ce shall be suffi cient proof of noti ce.

39

(b) for farming or ranching.This provision applies only if you:a. acquire the vehicle during the policy period; andb. ask us to insure it within 30 days aft er you become the owner.

This insurance does not apply if other insurance applies with respect to newly acquired autos.



1. You for the maintenance or use of any auto or trailer.2. For your covered auto, any person or organizati on but only with respect to

legal responsibility for acts or omissions of a person for whom coverage is aff orded under this Part.

3. For any auto or trailer other than your covered auto, any person or organizati on but only with respect to legal responsibility for acts or omissions of a person for whom coverage is aff orded under this Part. This provision applies only if the person or organizati on does not own or hire the auto or trailer.

B. The Exclusions Secti on is amended as follows:1. Exclusions A.6. and A.7. are replaced by the following: Maintaining or using any vehicle in the business of that insured. This

exclusion does not apply to a vehicle you are operati ng or occupying.2. Exclusion B.1. is replaced by the following: Any vehicle, other than your covered auto, which is owned by you. 3. Exclusion B.2. is replaced by the following: Any vehicle, other than your covered auto, which is owned by a family

member. However, this exclusion does not apply to your maintenance or use of any vehicle which is owned by a family member.

C. If the Declarati ons indicates an each accident limit of liability for Single Limit Liability Coverage, the Limit of Liability provision is replaced by the following:

LIMIT OF LIABILITY The limit of liability shown in the Schedule or in the Declarati ons for this coverage

is our maximum limit of liability for all damages resulti ng from any one auto accident.

This is the most we will pay regardless of the number of:1. Insureds;2. Claims made;3. Vehicles or premiums shown in the Schedule or in the Declarati ons; or4. Vehicles involved in the auto accident.

D. The Out of State Coverage provision is replaced by the following:

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(Enter “X” to indicate Damage to Your Auto Coverage provided)

( ) Collision Loss ACV minus $____ deducti ble

( ) Other Than Collision Loss ACV minus $____ deducti ble

Any liability and any required no-fault coverages aff orded by this policy for your leased auto also apply to the lessor named in this endorsement as an additi onal insured. This insurance is subject to the following additi onal provisions:

1. We will pay damages for which the lessor becomes legally responsible only if the damages arise out of acts or omissions of:(a) you or any family member, or(b) any other person except the lessor or any employee or agent of the lessor using

your leased auto.2. “Your leased auto” means:

(a) an auto shown in the Declarati ons or in this endorsement which you lease for a conti nuous period of at least six months under a writt en agreement which requires you to provide primary insurance for the lessor, and

(b) any substi tute or replacement auto furnished by the lessor named in this endorsement.

3. If we terminate this policy, noti ce will also be mailed to the lessor.4. The lessor is not responsible for payment of premiums.5. The designati on of the lessor as an additi onal insured shall not operate to increase our

limits of liability.Copyright, North Carolina Rate Bureau, 1980.



NAMED NON-OWNER COVERAGEWith respect to the individuals and coverages listed in the Schedule or in the Declarati ons, the provisions of the policy apply unless modifi ed by the endorsement.

I. DEFINITIONS The Defi niti ons Secti on is amended as follows: The defi niti on of your covered auto is replaced by the following: Your covered auto means any of the following types of vehicles on the date you

become the owner:a. a private passenger auto or stati on wagon type; orb. a pickup or van that:

(1) has a Gross Vehicle Weight as specifi ed by the manufacturer of less than 10,000 pounds; and

(2) is not used for the delivery or transportati on of goods and materials unless such use is:(a) incidental to your business of installing, maintaining or repairing

furnishings or equipment; or

27

3. If the named insured or a premium fi nance company cancels this policy, the premium owed or premium refund due will be calculated according to the short rate provisions contained in our manuals. If we cancel this policy, any premium owed or premium refund will be calculated on a pro-rata basis. However, making or off ering to make the refund is not a conditi on of cancellati on.

4. The eff ecti ve date of cancellati on stated in the noti ce shall become the end of the policy period.

TRANSFER OF YOUR INTEREST IN THIS POLICYYour rights and duti es under this policy may not be assigned without our writt en consent. However, if a named insured shown in the Declarati ons dies, coverage will be provided for:

1. The surviving spouse if resident in the same household at the ti me of death. Coverage applies to the spouse as if a named insured shown in the Declarati ons;

2. The legal representati ve of the deceased person as if a named insured shown in the Declarati ons. This applies only with respect to the representati ve’s legal responsibility to maintain or use your covered auto; and

3. Any person having proper temporary custody of your covered auto, as an insured, unti l the appointment of a legal representati ve.

Coverage will only be provided unti l the end of the policy period.

AUTO REPAIRSWe shall not recommend the use of a parti cular motor vehicle repair service without clearly informing the claimant that:

(1) the claimant is under no obligati n to use the recommended repair service;(2) the claimant may use the repair service of the claimant’s choice; and (3) the amount determined by us to be payable under the policy will be paid regardless of

whether or not the claimant uses the recommended repair service.Choice of LawThis policy is issued in accordance with the laws of North Carolina and covers property or risks principally located in North Carolina. Any and all claims or disputes in any way related to this policy shall be governed by the laws of North Carolina.


Larry Penti sPresident

Jeff rey WeissmannSecretary


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36492 (8-84)THIS ENDORSEMENT DOES NOT APPLY UNLESS THIS


IMPORTANT NOTICE - NORTH CAROLINA REINSURANCE FACILITYTo the extent liability, medical payments, uninsured motorists and underinsured motorists coverages are included in this policy, those coverages have been reinsured through the North Carolina Reinsurance Facility because the Company has elected not to retain those coverages voluntarily. The premium for the reinsured coverages is higher than if the coverages had not been so reinsured. The specifi c reason or reasons why the coverages have been so reinsured will be furnished on writt en request. You may seek insurance through other insurers and, since other companies may elect not to reinsure your policy, it may be to your advantage to do so.

NC 00 11 05 08THIS ENDORSEMENT DOES NOT APPLY UNLESS THIS


AMENDATORYENDORSEMENTNORTH CAROLINA PERSONAL AUTO POLICY

This endorsement is a part of your policy. Except for the changes it makes, all other terms of the policy remain the same and apply to this endorsement.

1. PART A - LIABILITY COVERAGEPart A is amended as follows:Exclusion 2. is deleted and replaced by the following:We do not provide Liability Coverage for any insured:2. For property damage to property:

a. owned in whole or in part by that insured; orb. being transported by that insured;

2. PART C1 - UNINSURED MOTORISTS COVERAGEPart C1 is amended as follows:A. The third paragraph of Limit of Liability is deleted and replaced by the following: The limits of bodily injury liability shown in the Schedule or Declarati ons for each

person and each accident for this coverage shall be reduced by all sums:1. Paid because of the bodily injury by or on behalf of persons or organizati ons

who may be legally responsible. This includes all sums paid under Part A; and2. Paid or payable because of the bodily injury under any disability benefi ts law

or any similar law. The most we will pay for bodily injury damages to an insured under this coverage

is the lesser of:1. the limit of bodily injury liability shown in the Schedule or Declarati ons for

each person for this coverage reduced by all sums described in items 1. and 2. of the preceding paragraph; or

37

and accidental loss to any electronic equipment that records, emits, amplifi es, receives or transmits audio, visual or data signals. This coverage applies only if the equipment is permanently installed in your covered auto at the ti me of loss.

We will also pay, without applicati on of a deducti ble and subject to the limit of liability for Coverage for Audio, Visual and Data Electronic Equipment Coverage, for direct and accidental loss to any accessories used with electronic equipment permanently installed in your covered auto.

3. The following is added to the Limit of Liability: Our limit of liability for the total of all losses to audio, visual or data electronic

equipment and any accessories used with this equipment, as a result of any one occurrence shall be the lesser of the:(1) Amount shown in the Schedule or in the Declarati ons;(2) Actual cash value of the stolen or damaged property; or(3) Amount necessary to repair or replace the property with other property of

like kind or quality. This amount does not include any reducti on in the value of the property aft er

it has been repaired, as compared to its value before it was damaged. An adjustment for depreciati on and physical conditi on will be made in

determining actual cash value at the ti me of loss.

Material in [brackets] may be amended as necessary.

Copyright, North Carolina Rate Bureau, 2005NC 03 19 (Ed. 7-80)

THIS ENDORSEMENT DOES NOT APPLY UNLESS THIS FORM NUMBER IS LISTED UNDER THE

FORMS SECTION ON THE DECLARATIONS PAGE

ADDITIONAL INSURED - LESSORInsured Company

Policy Number

Eff ecti ve Date Expirati on Date

Named Insured

Address

Additi onal Insured (Lessor)

Descripti on of your leased auto:

Coverages:

1. (a) Single Limit Liability $______ each accident

or (b) Bodily Injury Liability $______ each person $______ each accident Property Damage Liability $______ each accident2. No-Fault Coverage $______ each accident

36



COVERAGE FOR DAMAGE TO YOUR AUTO Customizing Equipment Coverage

Coverage for Audio, Visual and Data Electronic Equipment

All the provisions of the policy apply to the coverage(s) provided by this endorsement except as modifi ed herein:

A. Customizing Equipment Coverage When Customizing Equipment Coverage is indicated as applicable to a your covered

auto [in the Schedule or in the Declarati ons], the provisions of Part D – Coverage for Damage to Your Auto are modifi ed as follows:1. The following is added to Exclusion 12: This exclusion does not apply to any your covered auto described [in the Schedule

or in the Declarati ons] as subject to Customizing Equipment Coverage. 2. The following is added to the Limit of Liability: With respect to coverage provided for custom furnishings or equipment, our limit

of liability will be the lesser of the:

1. amount shown [in the Schedule or in the Declarations];2. actual cash value of the stolen or damaged custom furnishings or equipment;

or3. amount necessary to repair or replace the custom furnishings or equipment

with other property of like kind or quality. This amount does not include any reducti on in the value of the property aft er

it has been repaired, as compared to its value before it was damaged. For the purpose of this Endorsement, a camper body shown [in the Schedule

or in the Declarati ons], or any cap, cover or bedliner in or upon a pickup truck you own shall not be considered custom furnishings or equipment.

Any amount payable for loss to custom furnishings or equipment will be reduced by any amounts payable for damage to these furnishings or equipment under Part D of the policy.


B. Coverage for Audio, Visual and Data Electronic Equipment When Coverage for Audio, Visual and Data Electronic Equipment Coverage is

indicated as applicable to a your covered auto [in the Schedule or in the Declarati ons], the provisions of Part D – Coverage for Damage to Your Auto are modifi ed as follows:1. Exclusions 4.a. and 4.c. do not apply.2. The following is added to the Insuring Agreement: We will pay, without applicati on of a deducti ble and subject to the limit of liability

for Coverage for Audio, Visual and Data Electronic Equipment Coverage, for direct

29

2. the damages sustained by the insured for bodily injury reduced by:a. all sums described in items 1. and 2. in the preceding paragraph; andb. all sums paid or payable because of the bodily injury under any workers’

compensati on law. However, this reducti on does not apply to the extent that an employer’s lien is required to be paid under North Carolina’s workers’ compensati on law.


B. The fi rst paragraph of Arbitration is deleted and replaced by the following: If:1. We and an insured do not agree:

a. Whether that insured is legally enti tled to recovercompensatory damages from the owner or driver of an uninsured motor vehicle; or

b. As to the amount of such damages; and2. That insured has not fi led a lawsuit against us to sett le the dispute;

then the insured may demand to sett le the dispute by arbitrati on.C. Item 5. of Arbitration is deleted and replaced by the following:

5. Any arbitrati on acti on against us must begin within the same ti me limit required by the laws of the state where the accident occurred for fi ling a lawsuit against the owner or operator of the uninsured motor vehicle for the damages arising out of the accident. The starti ng point for this ti me period is the date on which the cause of acti on accrues against the owner or operator of the uninsured motor vehicle in the state where the accident occurred.

3. PART C2 - COMBINED UNINSURED/UNDER-INSURED MOTORISTS COVERAGEPart C2 is amended as follows:A. The fourth and fi ft h paragraphs of Limit of Liability are deleted and replaced by

the following: The limits of bodily injury liability shown in the Schedule or Declarati ons for each






2. the damages sustained by the insured for bodily injury reduced by:a. all sums described in items 1. and 2. in the preceding paragraph; and


28
















37













Policy Number


Named Insured

Address



Coverages:



36




















29


















30

b. all sums paid or payable because of the bodily injury under any workers’ compensati on law. However, this reducti on does not apply to the extent that an employer’s lien is required to be paid under North Carolina’s workers’ compensati on law.

B. The fi rst paragraph of Arbitration is deleted and replaced by the following:If:1. We and an insured do not agree:

a. Whether that insured is legally enti tled to recover compensatory damages from the owner or driver of an uninsured motor vehicle or underinsured motor vehicle; or

b. As to the amount of such damages; and2. That insured has not fi led a lawsuit against us to sett le the dispute; then the insured may demand to sett le the dispute by arbitrati on.

C. Item 5. of Arbitration is deleted and replaced by the following:5. Any arbitrati on acti on against us must begin within the same ti me limit

required by the laws of the state where the accident occurred for fi ling a lawsuit against the owner or operator of the uninsured motor vehicle or underinsured motor vehicle for the damages arising out of the accident. If the acti on is between an insured and the owner or operator of an uninsured motor vehicle, then the starti ng point for this ti me limit is the date on which the cause of acti on accrues against the owner or operator of the uninsured motor vehicle in the state where the accident occurred. If the acti on is between an insured and the owner or operator of an underinsured motor vehicle, then the starti ng point for this ti me limit is the later of the following:a. The date we advance payment to the insured in an amount equal to a

tentati ve sett lement between the insured and the owner or operator of the underinsured motor vehicle; or

b. The date any applicable liability bonds or policies have been exhausted by payments of judgments or sett lements.

4. PART D - COVERAGE FOR DAMAGE TO YOUR AUTO Part D is amended as follows: Exclusion 9 is changed by deleti ng the following: This exclusion does not apply to the interests of Loss Payees in your covered auto.

5. PART F - GENERAL PROVISIONS Part F is amended as follows: Termination - Cancellation, Nonrenewal, Automatic Termination, Other

Termination Provisions is amended by adding the following to paragraph 4 of the Cancellation Provision:

g. The named insured is no longer an eligible risk under G.S. 58-37-1.h. Any other reason permitt ed by the North Carolina General Statutes.

Other Termination Provisions is deleted and replaced by the following:1. If the law in eff ect in North Carolina at the ti me this policy is issued, renewed

or conti nued:a. requires a longer noti ce period;

35



TOWING AND LABOR COSTS COVERAGEIf a dollar limit is shown under “Limit of Coverage Per Disablement” for the coverage opti on applicable to your covered auto, we will pay towing and labor costs incurred each ti me your covered auto or any non-owned auto is disabled or keys are lost, broken or accidentally locked in the auto, up to the amount shown in the schedule or the Declarati ons for the applicable opti on. We will only pay for labor performed at the place of disablement.

If no dollar limit is shown under “Limit of Coverage Per Disablement” for the coverage opti on applicable to your covered auto, we will pay reasonable costs you incur for your covered auto or any non-owned auto:

1. for mechanical labor up to one hour at the place of a mechanical breakdown of the auto.

2. for lockout services up to $100 per lockout if keys to the auto are lost, broken or accidentally locked in the auto.

3. if it will not run, for towing to the nearest place where the necessary repairs can be made. The cost of towing out a stuck vehicle will only be paid if the vehicle is stuck on or immediately next to a public road.

4. for delivery of gas, oil, loaned batt ery, or change of ti re. We do not pay for the cost of the gas, oil, loaned batt ery or ti res.



COVERAGE FOR DAMAGE TO YOUR AUTO(Maximum Limit of Liability)

With respect to the Coverage(s) shown as applicable to a vehicle described in the Schedule or in the Declarati ons, the Limit of Liability provision in Part D is replaced by the following:




been repaired, as compared to its value before it was damaged.Our payment of loss will be reduced by an applicable deducti ble shown in the Schedule or in the Declarati ons. The maximum amount payable is the Limit of Liability less the applicable deducti ble. An adjustment for depreciati on and physical conditi on will be made in determining actual cash value at the ti me of loss.


34

However, this coverage does not apply when there is a total theft of your covered auto or a non-owned auto. Such coverage is provided under Part D of this policy.

Our payment will be limited to that period of ti me reasonably required to repair or replace the your covered auto or the non-owned auto.

B. INCREASED LIMITS TRANSPORTATION EXPENSES COVERAGEWhen there is a loss to a your covered auto described in the Schedule or in the Declarati ons for which a specifi c premium charge indicates that increased Limits Transportati on Expenses Coverage is aff orded, or to a non-owned auto:

1. Coverage for Extended Transportati on Expenses Coverage provided under this endorsement is increased to $30 per day up to a maximum of $900. All other provisions of Extended Transportati on Expenses Coverage apply.

2. Coverage for Transportati on Expenses Coverage provided under Part D of this policy is increased to $30 per day up to a maximum of $900.

C. ADDITIONAL INCREASED LIMITS TRANSPORTATION EXPENSES COVERAGEWhen there is a loss to your covered auto described in the Schedule or in the Declarati ons for which a specifi c premium charge indicates that Additi onal Increased Limits Transportati on Expenses Coverage is aff orded, or to a nonowned auto:

1. Coverage for Extended Transportati on Expenses Coverage provided under this endorsement is increased to $50 per day up to a maximum of $1,500. All other provisions of Extended Transportati on Expenses Coverage apply.

2. Coverage for Transportati on Expenses Coverage provided under Part D of this policy is increased to $50 per day up to a maximum of $1,500.



FORM NUMBER IS LISTED UNDER THeFORMS SECTION ON THE DECLARATIONS PAGE

TOWING AND LABOR COSTS COVERAGEWe will pay towing and labor costs incurred each ti me “your covered auto” or any “non-owned auto” is disabled or keys are lost, broken or accidentally locked in the auto, up to the amount shown in the Schedule or in the Declarati ons as applicable to that vehicle. If a “non-owned auto” is disabled, we will provide the broadest towing and labor costs coverage applicable to any “your covered auto” shown in the Schedule or in the Declarati ons. We will only pay for labor performed at the place of disablement.

Copyright, N. C. Rate Bureau, 1980, 1987, 1989, 1995

31

b. requires a special form of or procedure for giving noti ce;c. modifi es any of the stated terminati on reasons; or;d. adds any additi onal terminati on reasons;

we will comply with those requirements and this policy shall be deemed amended to include any such change in the law.

2. Proof of mailing of any noti ce shall be suffi cient proof of noti ce.3. If the named insured or a premium fi nance company cancels this policy,

the premium owed or premium refund due will be calculated according to the short rate provisions contained in our manuals. If we cancel this policy, any premium owed or premium refund will be calculated on a pro-rata basis. However, making or off ering to make the refund is not a conditi on of cancellati on.



1842 (05012008)



AMENDATORY ENDORSEMENTNORTH CAROLINA PERSONAL AUTO POLICY

This Endorsement amends the Policy as follows:

PART F – GENERAL PROVISIONS

Part F is amended as follows:

The following is added to the Changes provision:

The premium for this policy may vary based upon the purchase of other insurance from us or one of our affi liated companies.




AMENDATORY ENDORSEMENT - NORTH CAROLINAWith respect to the auto(s) and coverage(s) shown in the Schedule as applicable, we will pay for direct and accidental loss caused by any of the following specifi ed perils to:

1. your covered auto; and2. any private passenger auto or trailer not owned by, or not furnished for the

regular use of, but operated by, or in the custody of, you or any family member;including its equipment.


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35


















34














31







1842 (05012008)
















32

A. Fire - Loss caused by:(1) fi re or lightning;(2) smoke due to a sudden, unusual and faulty operati on of any fi xed heati ng

equipment serving the premises in which the auto is stored;(3) the stranding, sinking, burning, collision or derailment of any conveyance in

or on which the auto is being transported. B. Theft - Loss caused by theft or larceny.C. Combined Additi onal Coverage - Loss caused by:

(1) windstorm;(2) hail;(3) earthquake;(4) explosion;(5) riot or civil commoti on;(6) forced landing or falling of any aircraft or its parts or equipment(7) fl ood or rising waters;(8) external discharge or leakage of water. This does not include loss resulti ng

from:a. rainb. snow; orc. sleetwhether or not wind driven.

D. Mischief & Vandalism - Loss caused by mischief or vandalism. However, with respect to loss caused by mischief or vandalism, $25 shall be

deducted from each such loss to each auto.E. Windstorm, Hail, Earthquake or Explosion - Loss caused by:

(1) Windstorm;(2) Hail;(3) Earthquake; or (4) Explosion

With respect to the Stated Amount shown as applicable to a vehicle described in the Schedule or in the Declarati ons, the Limit of Liability provision in Part D is replaced by the following:


1. Stated amount shown in the Schedule or in the Declarati ons;2. Actual cash value of the stolen or damaged property; or3. Amount necessary to repair or replace the property.

33

Our payment for loss will be reduced by any applicable deducti ble shown in the Schedule or in the Declarati ons. The deducti ble will not apply to loss resulti ng from theft of the enti re auto. The maximum amount payable is the Limit of Liability less the applicable deducti ble. An adjustment for depreciati on and physical conditi on will be made in determining actual cash value at the ti me of loss.

The coverage provided by this endorsement is subject to all the provisions of the policy applicable to Part D.

Copyright, North Carolina Rate Bureau, 1980, 1987NC 03 01 (Ed. 7-87)

THIS ENDORSEMENT DOES NOT APPLY UNLESS THISFORM NUMBER IS LISTED UNDER THE


FEDERAL EMPLOYEES USING AUTOS IN GOVERNMENT BUSINESS

The following are not insureds under Part A of the policy:

1. The United States of America or any of its agencies.2. Any person with respect to bodily injury or property damage resulti ng from the

operati on of an auto by that person as an employee of the United States Government if the provisions of Secti on 2679 of Title 28, United States Code (Federal Tort Claim Act), as amended, require the Att orney General of the United States to defend that person in any civil acti on or proceeding which may be brought for the bodily injury or property damage.




EXTENDED TRANSPORTATION EXPENSES COVERAGEThe provisions and exclusions that apply to Part D - Coverage for Damage to Your Auto also apply to this endorsement except as changed by this endorsement.

A. EXTENDED TRANSPORTATION EXPENSES COVERAGEWhen there is a loss to a your covered auto described in the Schedule or in the Declarati ons for which a specifi c premium charge indicates that Extended Transportati on Expenses Coverage is aff orded, or to a non-owned auto, we will pay, without applicati on of a deducti ble, up to $15 per day to a maximum of $450 for:

1. Transportati on expenses incurred by you.2. Loss of use expenses for which you become legally responsible in the event of a loss to

a non-owned auto.This coverage applies only if:

1. Your covered auto or the non-owned auto is withdrawn from use for more than 24 hours; and

2. The loss is caused by collision or is otherwise covered under Part D of this policy.


34














31







1842 (05012008)















30















35



















36




















29

















28
















37













Policy Number


Named Insured

Address



Coverages:




38



















27














26















39

















40

















25













24














41

















42




READ IT CAREFULLY.













23

















22











43




















44







1843 (05012008)




Designee Title

No Designee








21















20














45











1844 (05012008)





46





6915 (01/05)






$_______________ each person

$_______________ each accident $________________











19















18














47


















NATURE; OR


48














17












above.




16
















49















50





















15

















1. Insureds;

14
















51














Life 100%








52
















13



















12











above.





53









SCHEDULE


_________________










54


















11














10


















55


















56


















9
















8









57















OTHER INSURANCE



than you; or


58














7













6
















auto or trailer.

59

















60

















5













4












61







Table I




joints.


62

Table II






3

















2
















63












Exclusions






64


Conditi ons











1

















www.gmacinsurance.com

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500 W 5th Street Winston Salem, NC 27101-2728

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07164 (11012011)

North Carolina Personal Automobile Policy

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