louisiana personal automobile policy - … · damage and arises out of the ownership, maintenance...

LOUISIANA PERSONAL

AUTOMOBILE POLICY

TABLE OF CONTENTS

AGREEMENT Your Duties In Case Of An Accident Or Loss ...................................... 1 General Definitions .............................................................................. 3 PART I - LIABILITY TO OTHERS Insuring Agreement.............................................................................. 8 Additional Definition ............................................................................. 9 Additional Payments .......................................................................... 10 Exclusions .......................................................................................... 10 Limits Of Liability ................................................................................ 13 Financial Responsibility Laws ............................................................ 14

Out of State Coverage ....................................................................... 14 Other Insurance ................................................................................. 15 Two or More Policies Issued by Us ................................................... 15 PART II - EXCESS MEDICAL PAYMENTS COVERAGE Insuring Agreement............................................................................ 16 Additional Definitions ......................................................................... 16 Exclusions .......................................................................................... 17 Limit of Liability .................................................................................. 19 Other Insurance ................................................................................. 20 PART III - UNINSURED/UNDERINSURED MOTORIST COVER-AGE Insuring Agreement – Uninsured/Underinsured Motorist Bodily Injury Coverage ......................................................................... 21 Insuring Agreement – Economic Loss Only Uninsured/

Underinsured Motorist Bodily Injury Coverage ........................ 21 Insuring Agreement – Uninsured/Underinsured Motorist Property Damage Coverage .................................................................... 22 Additional Definitions ......................................................................... 23 Exclusions .......................................................................................... 24 Limits Of Liability ................................................................................ 28 Other Insurance ................................................................................. 30 PART IV - DAMAGE TO YOUR VEHICLE Insuring Agreement – Collision Coverage ......................................... 30 Insuring Agreement – Comprehensive Coverage ............................. 31 Transportation Expenses ................................................................... 31 Additional Definitions ......................................................................... 32 Exclusions .......................................................................................... 32 Limit Of Liability .................................................................................. 37 Insuring Agreement – Rental Reimbursement................................... 38 Payment Of Loss ............................................................................... 39 No Benefit To Bailee .......................................................................... 40 Loss Payee Agreement...................................................................... 40 Other Insurance ................................................................................. 40 Appraisal ............................................................................................ 41 Other Sources of Recovery ............................................................... 41 PART V - TOWING AND LABOR

Insuring Agreement............................................................................ 41 Additional Definitions ......................................................................... 42 Exclusions .......................................................................................... 42

PART VI - ACCIDENTAL DEATH BENEFIT Insuring Agreement............................................................................ 43 Additional Definitions ......................................................................... 43 Exclusions .......................................................................................... 44 Limit of Liability .................................................................................. 45 Payment of Benefits ........................................................................... 45 Other Insurance ................................................................................. 46

GENERAL PROVISIONS Business Use Coverage .................................................................... 46 Policy Period And Territory ................................................................ 46 Policy Changes .................................................................................. 46 Two or More Policies Issued by Us ................................................... 48 Terms Of Policy Conformed To Statutes ........................................... 48 Transfer of Your Interest .................................................................... 48 Number Of Vehicles Listed ................................................................ 48 Fraud Or Misrepresentation ............................................................... 48 Payment Of Premium......................................................................... 49 Late Payment ..................................................................................... 49 Cancellation ....................................................................................... 51 Nonrenewal ........................................................................................ 53 Automatic Termination ....................................................................... 53 Proof Of Notice .................................................................................. 54 Coverage Changes ............................................................................ 54 Legal Action Against Us ..................................................................... 54 Our Rights To Recover Payment ....................................................... 54 Bankruptcy ......................................................................................... 55 Two or More Vehicles Insured ........................................................... 55 Loss Payable Clause ......................................................................... 55 NAMED DRIVER EXCLUSION...................................................... 55 NAMED OPERATOR NON-OWNED VEHICLE COVERAGE ....... 55

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LOUISIANA MOTOR VEHICLE POLICY

If you pay your premium when due, we agree to pro-vide the insurance described herein, subject to all the terms and provisions of this policy, and up to the Limits of Liability described in this policy and shown on the declarations page.

Your application, the declarations page and all en-dorsements are part of this policy agreement. This agreement is based on our reliance upon the fact that the statements in your application, any change re-quest, and the declarations page are your statements and are true.

Unless otherwise shown on the declarations page, your statements are as follows:

1. Your covered vehicle is used only for pleasure or business use;

2. You are the only owner of the covered vehicle; and

3. Neither you nor any member of your household has had a license to drive or vehicle registration suspended, revoked, or refused in the thirty six (36) months immediately before the issuance of this policy.

YOUR DUTIES IN CASE OF AN ACCIDENT OR LOSS You, or any person claiming coverage under this pol-icy, must perform the following duties. Failure to per-form any of these duties may result in no coverage:

1. Notify us promptly. You or an insured person must report each accident or loss by calling us at 1-800-SAFE-AUTO (1-800-723-3288), even if an insured person is not at fault. The notice must give the time, place and circumstances of the acci-dent or loss, including the names and addresses of injured persons and witnesses.

2. Cooperate with us and help us in any matter con-cerning a claim or suit. Do not assume obligations, incur expenses, volunteer payments, enter into an agreement with or admit liability to anyone, and do not waive any defenses. If you do, our obligation for coverage will be reduced in proportion to the

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prejudice we suffer because of your actions.

3. Promptly send us any legal papers received relat-ing to a claim or suit.

4. Submit to physical examinations at our expense by doctors we choose as often as we may reasonably require. We will send a copy of the reports to you at your written request.

5. Authorize us to obtain medical, employment, and other records. If the insured person is dead or unable to act, his or her legal representative shall authorize us to obtain this information.

6. Provide any written proofs of loss we require.

7. Provide us with written sworn statements or affida-vits regarding any element of your claim upon our request, as often as we may reasonably require.

8. Let us record your statements, submit to examina-tions under oath at times and places within the State of Louisiana as often as we may reasonably require, and sign copies of the statements and/or examinations.

9. Produce and authorize us to examine any records, receipts, and invoices, including financial records, needed to investigate the loss. Permit us to copy such documents.

10. Attend and participate in any and all hearings and trials arising out of any accident or loss at any time and place designated by the court.

11. Notify the police within 24 hours of any accident or loss, including, but not limited to any accident or loss involving a hit-and-run motorist.

If you are claiming coverage under PART IV – DAM-AGE TO YOUR VEHICLE, you must perform the fol-lowing additional duties:

1. Take reasonable steps after the loss to protect your covered vehicle or the non-owned vehicle and its equipment from further damage or loss. We will pay reasonable expenses incurred in providing that protection. Further loss due to your failure to protect the vehicle will not be covered.

2. Promptly report theft, vandalism or an accident to the police or other civil authority within 24 hours of

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the occurrence or as soon as practical.

3. Allow us to inspect and appraise the damage to your covered vehicle or a non-owned vehicle before its repair or disposal.

GENERAL DEFINITIONS Except as otherwise defined in this policy, terms ap-pearing in boldface will have the following meaning:

"Accident" means a sudden, unexpected, and uninten-tional event that causes bodily injury or property damage and arises out of the ownership, maintenance or use of a vehicle. All bodily injury or property damage that arises out of the event, whether due to the proximate cause, uninterrupted cause or continuing cause of the event and regardless of the number of people, vehicles or claims involved in the event, shall be considered as a part of the same event.

"Bodily injury" means physical bodily injury to a hu-man being and sickness, disease, or death which re-sults from it.

“Business use” means your use of a covered vehicle to convey you:

1. from one location to another;

2. during and in the course and scope of your em-ployment; and

3. at the direction of your employer.

Business use includes only your use of a covered vehicle:

1. for consumer oriented sales, service or direct home sales;

2. to visit multiple locations without the transportation of clients or patients;

3. for rare business-related errands; or

4. to transport tools or other materials used in a trade or business if:

a. no more than three (3) job sites are visited per day; or

b. there is no hauling of explosives, chemicals or flammable materials.

Business use does not include your use of a covered

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vehicle for the following activities:

1. the pickup or delivery of goods. This includes, but is not limited to, delivery of magazines, newspa-pers, food, or any other products;

2. the transport of persons or property for a fee. This includes limousine, taxi, or livery services;

3. the transport of people. This includes, but is not limited to, nursery school children, medical pa-tients, clients, migrant workers, or hotel/motel guests during and in the course of your employ-ment;

4. snow removal; or

5. any other commercial purpose not expressly set forth in the definition of business use.

This policy is intended to cover the following activities regardless of whether you purchase business use coverage:

1. shared-expense car pools; or

2. commuting to and from your place of employment.

Mileage reimbursement shall not constitute pecuniary gain or commercial advantage. Business use shall not include any commercial use.

"Commercial use" means the use of any vehicle for pecuniary gain or commercial advantage, including but not limited to: changing, distributing, transporting, or delivering of commercial tools, materials, supplies, or finished products, including but not limited to delivery of pizza, magazines, flowers, newspapers, mail, or other business types of delivery. Commercial use also means the use of any vehicle as a public or livery con-veyance, including but not limited to nursery or school children, medical patients, migrant workers, or hotel/motel guests, but does not apply to shared expense car pools or any business use.

"Covered vehicle" means:

1. any vehicle shown on the declarations page;

2. any additional vehicle on the date you purchase the vehicle if:

a. you acquire the vehicle during the policy pe-riod shown on the declarations page;

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b. we insure all vehicles owned by you; and

c. no other insurance policy provides coverage for that vehicle.

Comprehensive, Collision and Uninsured/Underinsured Motorist Property Damage Coverage do not apply to any additional vehicle unless spe-cifically requested by the named insured in writing before a loss involving the additional vehicle. We will provide coverage, other than Comprehensive, Collision and Uninsured/Underinsured Motorist Property Damage Coverage, for a period of thirty (30) days after you become the owner. We will not provide coverage after this thirty (30) day pe-riod, unless within this period you ask us in writing to insure the vehicle;

3. any vehicle you permanently replace a covered vehicle with on the date you become the legal owner, if: a. you acquire the vehicle during the policy pe-

riod shown on the declarations page;

b. the vehicle that you acquire replaces a vehi-cle shown on the declarations page; and

c. no other insurance policy provides coverage for that vehicle.

If the vehicle that you acquire replaces one shown on the declarations page, it will have the same coverage as the vehicle it replaces. However, for coverage to apply, you must notify us in writing and pay the appropriate premium for a replacement vehicle within thirty (30) days of the time you ac-quire legal ownership of the vehicle. You may add or increase coverage for the replacement vehicle; however, such coverage will be in effect no earlier than the date and time of receipt of the written communication you used to ask us to add or in-crease the coverage; and

4. any temporary substitute motor vehicle or rental private passenger automobile. Comprehensive and Collision Coverages under PART IV – DAM-AGE TO YOUR VEHICLE will only apply if you have paid a premium for Comprehensive and/or Collision Coverages for at least one (1) of the vehi-cles described in 1,2, or 3 above.

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“Custom parts or equipment” means equipment, de-vices, accessories, enhancements, and changes, other than those which are original manufacturer installed, which:

1. are permanently installed or attached; and

2. alter the appearance or performance of a vehicle.

This includes any electronic equipment, antennas, and other devices used exclusively to send or receive au-dio, visual, or data signals, or to play back recorded media, other than those which are original manufac-turer installed, that are permanently installed in a cov-ered vehicle using bolts or brackets, including slide-out brackets.

"Declarations page" means the report from us listing:

1. the policy period;

2. the types of coverage you elected;

3. the limit for each coverage;

4. the cost for each coverage;

5. the specified vehicles covered by this policy;

6. the types of coverage for each such vehicle; and

7. other information applicable to this policy.

“Diminished value” means the reduction in the resale value of a vehicle caused by a loss, and includes dimi-nution caused by an inability to return the vehicle to its pre-loss condition, substandard repairs and the loss of antique or collector value.

"Loss" means the sudden, direct, and accidental loss of, or damage to, your covered vehicle, including its factory installed equipment and special equipment added by endorsement.

"Non-owned vehicle" means any vehicle that is not owned by, or available for regular use by, you, anyone listed as an additional driver on the declarations page, a relative, or the named insured's non-resident spouse.

"Occupying" means in, upon, getting in, on, out of, or off.

"Owned" means the person:

1. holds legal title to the vehicle;

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2. has legal possession of the vehicle that is subject to a written security agreement with an original term of six (6) months or more; or

3. has legal possession of the vehicle that is leased to that person under a written agreement for a con-tinuous period of six (6) months or more.

"Owner" means any person who, with respect to a ve-hicle:

1. holds legal title to the vehicle;

2. has legal possession of the vehicle that is subject to a written security agreement with an original term of six (6) months or more; or

3. has legal possession of the vehicle that is leased to that person under a written agreement for a con-tinuous period of six (6) months or more.

"Property damage" means physical damage to, or de-struction or loss of use of, tangible property.

“Relative” means a person residing in the same house-hold as you, and related to you by blood, marriage, or adoption, including a ward, stepchild, or foster child. It includes your unmarried or unemancipated child under the age of twenty-five (25) and away at school if they intend to continue to reside in your household..

"Resident" means any person who lives in the same household as you for longer than thirty (30) consecu-tive days.

“Spouse” means your husband or wife by marriage who resides primarily with you.

“State” means the District of Columbia, and any state, territory or possession of the United States of America.

"Temporary substitute motor vehicle" means any vehicle not owned by you or a relative being tempo-rarily used with the owner’s express or implied permis-sion as a substitute for a covered vehicle that is being serviced or repaired as the result of a covered loss.

“Trailer” means a non-self-propelled, wheeled, mobile unit designed to be towed on public roads by a vehicle. It includes a farm wagon or farm implement while being towed by a vehicle. It does not include a mobile home or a trailer that:

1. is used for any business use;

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2. is used as a primary residence;

3. is used as a premises for office, store, or display purposes; or

4. is used as a passenger conveyance.

“Vehicle” means a self-propelled land motor vehicle:

1. which is a private passenger auto, pickup truck, or van;

2. designed for operation principally upon public roads;

3. with no more nor less than four (4) wheels; and

4. with a gross vehicle weight of 10,000 pounds or less.

However, vehicle does not include any kit car, step-van, parcel delivery van, cargo cutaway van, or other van with a cab separate from the cargo area.

"We", "Us", and "Our" mean Safe Auto Insurance Com-pany.

“You” and “your” mean:

1. the person shown as the Named Insured on the declarations page; and

2. the spouse of the Named Insured if residing in the same household at the time of the loss.

PART I - LIABILITY TO OTHERS

INSURING AGREEMENT Subject to the terms, conditions and exclusions of this policy, and Limits of Liability, if you pay the premium for liability coverage, we will pay damages, other than punitive or exemplary damages, for bodily injury and property damage for which an insured person be-comes legally responsible because of an accident aris-ing out of the:

1. ownership, maintenance, or use of a vehicle; or

2. use of any trailer while attached to a:

a. covered vehicle; or

b. temporary substitute motor vehicle or non-owned vehicle operated by an insured per-son.

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We will settle or defend, as we consider appropriate, any claim or suit for damages covered by this Part I. Our duty to settle or defend ends when our Limit of Liability for this coverage has been exhausted by the payment of a judgment or settlement . We will not be obligated to pay for the cost of any further investigation or arrangement for settlement or defend you further after the Limit of Liability has been exhausted by the payment of a judgment or settlement. We have no duty to defend any lawsuit, arrange any settlement or pay any claim for bodily injury or property damage which a court of law has determined is not covered under this policy.

ADDITIONAL DEFINITION When used in this PART I – LIABILITY TO OTHERS, "insured person" or "insured persons” means:

1. with respect to an accident arising out of the own-ership, maintenance or use of your covered vehi-cle:

a. you or a relative;

b. any person listed on the declarations page as an additional driver;

c. a person using your covered vehicle with your express or implied permission unless that person is a resident who is not listed on the declarations page as an additional driver; and

d. any person or organization which does not own or hire your covered vehicle but is liable for its use by an insured person under (1)(a) or (1)(b) above.

2. with respect to an accident arising out of the use of a non-owned vehicle:

a. you, provided the use of a non-owned vehicle is with the express or implied permission of the owner; and

b. a relative, provided the use of a non-owned vehicle is with your express or implied permis-sion, and the express or implied permission of the owner of the vehicle; and

3. any person or organization with respect only to vi-carious liability for an accident arising out of the use of a covered vehicle or non-owned vehicle

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by a person described in 1 or 2 above.

ADDITIONAL PAYMENTS These additional payments are only available under this PART I - LIABILITY TO OTHERS section of this policy. In addition to our Limit of Liability, we will pay for an insured person:

1. all expenses that we incur in the settlement of any claim or defense of any lawsuit;

2. any legal interest in connection with a final judg-ment awarded against an insured person, accru-ing from the date of judicial demand until the final judgment is paid. Payments hereunder are limited to the interest that accrues on the portion of the final judgment that falls within our Limit of Liability. Legal interest payments under this policy are not payable until a final judgment is rendered, thus we will not pay legal interest on any pre-judgment set-tlement;

3. the premium on any appeal bond or attachment bond required in any lawsuit we defend. We have no duty to purchase a bond in an amount exceed-ing our Limit of Liability, and we have no duty to apply for or furnish these bonds;

4. up to $250 for an insured person for a bail bond required due to an accident related traffic law vio-lation resulting in bodily injury or property dam-age and arising out of the ownership, maintenance or use of a covered vehicle or non-owned vehi-cle. We have no duty to apply for or furnish this bond; and

5. reasonable expenses, including loss of earnings up to $50 a day, incurred at our request,

EXCLUSIONS - READ THE FOLLOWING EXCLU-SIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART I – LIABILITY TO OTHERS. Coverage under this PART I - LIABILITY TO OTHERS does not apply to:

1. punitive or exemplary damages;

2. any liability assumed by an insured person under any bailment or agreement;

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3. bodily injury to an employee of an insured per-son arising out of an accident while the employee is in the course of his or her employment. This does not apply to a household employee who is neither covered nor required to be covered under workers’ compensation insurance, disability bene-fits or similar laws;

4. bodily injury or property damage arising out of the ownership, maintenance or use of any vehicle, including your covered vehicle, while an insured person is employed or otherwise engaged in the course and scope of any employment or occupa-tion unless you have paid a specific premium for business use coverage;

5. bodily injury or property damage caused by an intentional act of an insured person or at the di-rection of an insured person even if the actual injury or damage is different than that which was intended or expected;

6. bodily injury or property damage arising out of the maintenance or use of a vehicle, including your covered vehicle, by an insured person while it is being used as a public or livery convey-ance. This exclusion does not apply to shared-expense carpools;

7. bodily injury or property damage resulting from the ownership, maintenance or use of any vehicle, other than your covered vehicle, which is owned or hired by, furnished to or available for the regular use of any insured person;

8. bodily injury or property damage arising while the covered vehicle is being operated by a resi-dent of your household or by a regular user of the covered vehicle, unless that person is listed as an additional driver on the declarations page;

9. bodily injury or property damage arising while the covered vehicle is being operated by a person who is listed as an excluded driver on the declara-tions page;

10. bodily injury or property damage resulting from, or sustained during practice or preparation for:

a. any pre-arranged or organized racing, speed or demolition contest, stunting activity; or

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b. any driving activity conducted on a permanent or temporary racetrack or racecourse;

11. bodily injury or property damage arising out of the ownership, maintenance or use of a vehicle or trailer while it is:

a. being used to flee or elude law enforcement;

b. being used in any illicit trade or transportation;

c. used in the commission of any felony, including theft of your covered vehicle;

d. seized by federal or state law enforcement offi-cers as evidence in a case against an insured person under the federal Controlled Sub-stances Act, 21 U.S.C. Chapter 13, Section 801 et seq.

This exclusion applies regardless of whether that insured person is actually charged with, or con-victed of, a crime; or

12. bodily injury or property damage arising out of the ownership, maintenance or use of your cov-ered vehicle while it is being rented, leased or subleased to others; or

13. bodily injury or property damage arising out of, or due to the ownership, maintenance or use of a vehicle by an insured person for transporting any explosive substance, toxic material, flammable liq-uid or similarly hazardous material;

14. bodily injury or property damage occurring while a covered vehicle is being used as a residence or premises;

15. bodily injury or property damage which occurs while your covered vehicle is used to pull a mo-bile home or trailer which is used as an office, store, display or recreational vehicle;

16. bodily injury or property damage which occurs while your covered vehicle is being towed, or is towing another vehicle;

17. property damage to any property owned by, rented to, being transported by, used by, or in the charge of an insured person. However, this exclu-sion does not apply to a rented residence or a rented garage damaged by a covered vehicle;

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18. bodily injury or property damage arising out of an auto business operation, including but not lim-ited to the selling, repairing, servicing, testing, tow-ing, storing or parking of vehicles;

19. bodily injury or property damage:

a. caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, nuclear reaction, radiation, radioactive contamination, or any consequence of any of these;

b. for which insurance is afforded under an atomic or nuclear energy liability insurance contract or would be afforded under an atomic or nuclear energy liability insurance contract but for its termination upon exhaustion of its limit of liabil-ity. The reason for this is that by law such poli-cies protect all persons involved in the acci-dent, regardless of fault;

c. for which the United States Government is li-able under the Federal Tort Claims Act; or

d. arising out of the use of farm machinery.

LIMITS OF LIABILITY The Limit of Liability shown on the declarations page is the most we will pay regardless of the number of:

1. claims made;

2. covered vehicles;

3. insured persons;

4. lawsuits brought;

5. vehicles involved in the accident; 6. premiums paid;

7. claimants; or

8. policies.

Your declarations page shows a split limit. This means:

1. the amount shown for "each person" is the most we will pay for all damages due to a bodily injury to one person resulting from any one accident; and

2. subject to the "each person" limit, the amount

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shown for "each accident" is the most we will pay for all damages due to bodily injury sustained by two or more persons in any one accident; and

3. the amount shown for property damage is the most we will pay for the total of all property dam-age for which you become legally liable as a result of any one accident.

The “each person” Limit of Liability includes the total of all claims made for bodily injury to a person and all claims of others derived from such bodily injury, in-cluding but not limited to, emotional injury or mental anguish resulting from the bodily injury of another or from witnessing the bodily injury of another, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death.

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

Any payment to a person under this PART I – LIABIL-ITY TO OTHERS shall be reduced by any payment to that person under PART II – EXCESS MEDICAL PAY-MENTS COVERAGE or PART III – UNINSURED/UNDERINSURED MOTORIST COVERAGE for the same element of damages.

A vehicle and attached trailer are considered one (1) vehicle. Therefore, the Limits of Liability will not be in-creased for an accident involving a vehicle which has an attached trailer, even if both are covered under this PART I – LIABILITY TO OTHERS.

FINANCIAL RESPONSIBILITY LAWS When we certify this policy as proof under a state finan-cial responsibility law, this policy will comply with that law to the extent of the coverage and limits of liability required by that law. You must reimburse us if we make a payment that we would not have made if this policy was not certified as proof of financial responsibil-ity.

OUT-OF-STATE COVERAGE

If an accident to which this Part I applies occurs in any state, territory, or possession of the United States of America or any province or territory of Canada, in which we are licensed to write the type of insurance provided by this policy, other than the one in which a covered vehicle is principally garaged, and the state,

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province, territory or possession has:

1. a financial responsibility or similar law requiring minimum limits of liability for bodily injury or prop-erty damage higher than the limits shown on the declarations page, this policy will provide the higher limit; or

2. a compulsory insurance or similar law requiring a non-resident to maintain insurance whenever the non-resident uses a vehicle in that state, province, territory or possession, this policy will provide the greater of:

a. the required minimum amounts and types of coverage; or

b. the Limits of Liability under this policy.

OTHER INSURANCE If there is other applicable liability insurance or bond for an accident covered by this PART I – LIABILITY TO OTHERS and resulting from the ownership, mainte-nance or use of a covered vehicle, temporary substi-tute motor vehicle, or rental private passenger auto-mobile, we will pay only our proportionate share as our limits of liability bear on the total of all applicable liability limits. However, if other automobile insurance cover-age is purchased by you or an insured person for a temporary substitute motor vehicle or rental private passenger automobile, that coverage shall become primary and coverage hereunder shall be excess to that coverage.

Any insurance we provide for a vehicle, other than a covered vehicle, temporary substitute motor vehi-cle, or rental private passenger automobile, will be ex-cess over any other collectible insurance, self-insurance, or bond.

TWO OR MORE POLICIES ISSUED BY US If this policy and any other policies that are issued by us, or any company affiliated with us, insure you or any other insured person as a Named Insured or an additional insured, and provide liability coverage, and apply to the same accident, then the aggregate limit of liability under all such policies shall not exceed the highest applicable limit of liability under any one policy.

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PART II- EXCESS MEDICAL PAYMENTS COVER-

AGE

INSURING AGREEMENT Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability shown on the declara-tions page, if you pay a premium for Excess Medical Payments Coverage, we will pay the usual and cus-tomary charge for reasonable medical expenses incurred for medical and funeral services because of bodily injury:

1. caused by accident;

2. sustained by an insured person; and

3. arising out of the ownership, maintenance, or use of a covered vehicle.

provided the bodily injury is diagnosed within one (1) year of the date of the accident and reported to us within three (3) years of the date of the accident. If the bodily injury is not diagnosed within one (1) year of the accident and reported to us within three (3) years of the date of the accident, we will pay for only such expenses incurred within three (3) years of the date of the accident. Any dispute as to the usual and customary charge will be resolved between us and the service provider.

This Part II does not cover expenses for bodily injury arising out of the ownership, maintenance or use of a trailer. This Part II does not apply to that amount paid or pay-able under any health or accident insurance available to you regardless of whether the other coverage is pri-mary, excess, or contingent.

ADDITIONAL DEFINITIONS When used in this PART II – EXCESS MEDICAL PAY-MENTS COVERAGE:

"Insured person" and "insured persons" mean:

1. you while occupying any vehicle, other than a vehicle owned by you which is not a covered ve-hicle;

2. a relative and any other person listed on the dec-

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larations page as an additional driver while occu-pying a covered vehicle or non-owned vehicle; and

3. you, a relative or and any other person listed on the declarations page as an additional driver when struck by a motor vehicle or trailer while not occupying a motor vehicle.

“Reasonable medical expenses” means expenses for necessary medical, surgical, x-ray, dental, ambulance, hospital, professional nursing and funeral services, eyeglasses, hearing aids and prosthetic devices. The following do not qualify as reasonable medical ex-penses:

1. expenses for treatment, services, products or pro-cedures that are experimental in nature, for re-search, or not primarily designed to serve a medi-cal purpose;

2. expenses for treatment, services, products or pro-cedures that are not commonly or customarily rec-ognized throughout the medical profession and within the United States as appropriate for the treatment of the bodily injury;

3. expenses incurred for the use of thermography or other related procedures of a similar nature; or

4. expenses incurred for the purchase or rental of equipment not primarily designed to serve a medi-cal purpose.

"Usual and customary charge" means an amount which we determine represents a customary charge for services in the geographical area in which the service is rendered. We shall determine this customary charge through the use of independent sources of our choice.

EXCLUSIONS - READ THE FOLLOWING EXCLU-SIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART II – EXCESS MEDICAL PAYMENTS COVERAGE. Coverage under this PART II – EXCESS MEDICAL PAYMENTS COVERAGE does not apply to bodily injury:

1. sustained while occupying a vehicle while being used as a public or livery conveyance;

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2. if workers’ compensation or disability benefits are available for the bodily injury;

3. sustained by any person while occupying a cov-ered vehicle without the express or implied per-mission of you or a relative;

4. sustained by you, a relative, or a person listed on the declarations page as an additional driver, while occupying a non-owned vehicle without the express or implied permission of the owner;

5. caused intentionally by the insured person or at the insured person’s direction, even if the actual injury or damage is different than that which was intended or expected;

6. sustained while occupying any vehicle or trailer while being used as a residence or premises;

7. arising out of an accident involving a vehicle or trailer while being used by a person while em-ployed or engaged in the business of selling, leas-ing, repairing, parking, storing, servicing, delivering, or testing vehicles. However, this exclusion does not apply to you, a relative, any person listed on the declarations page as an additional driver, or an agent or employee of you or a relative, when using a covered vehicle;

8. resulting from any pre-arranged or organized rac-ing, speed or demolition contest, stunting activity, or in practice or preparation for any such contest or activity;

9. resulting from the operation or use of a vehicle, other than a covered vehicle, owned or leased by you, a relative, a person who resides with you, or any person listed on the declarations page as an additional driver or available for your, a resident’s, or an insured person’s regular use;

10. resulting from an insured person’s operation or use of a vehicle that is not listed on the declara-tions page that is available for the insured per-son’s regular use;

11. to any person while occupying any covered vehi-cle while rented or leased to another. This exclu-sion does not apply to the operation of a covered vehicle by an insured person;

19

12. caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, or any conse-quence of any of these;

13. for which insurance is afforded under an atomic or nuclear energy liability insurance contract or would be afforded under an atomic or nuclear energy li-ability insurance contract but for its termination upon exhaustion of its limit of liability. The reason for this is that by law such policies protect all per-sons involved in the accident, regardless of fault;

14. caused directly or indirectly by:

a. any accidental or intentional discharge, disper-sal, or release of radioactive, nuclear, patheno-genic, or poisonous material; or

b. any intentional discharge, dispersal, or release of chemical or hazardous material for any pur-pose other than its safe and useful purpose;

15. for which the United States Government is liable under the Federal Tort Claims Act;

16. arising out of the ownership, maintenance or use of a vehicle or trailer while it is:

a. being used to flee or elude law enforcement;


c. used in the commission of any felony, including theft of your covered vehicle;

d. seized by federal or state law enforcement offi-cers as evidence in a case against an insured person under the federal Controlled Sub-stances Act, 21 U.S.C. Chapter 13, Section 801 et seq;

This exclusion applies regardless of whether that insured person is actually charged with, or con-victed of, a crime; or

17. sustained in the course of any business or employ-ment, unless you have paid a specific premium for business use coverage.

LIMIT OF LIABILITY The Medical Payments Limit of Liability shown on the declarations page is the most we will pay for each insured person injured in any one (1) accident, re-

20

gardless of the number of:

1. claims made;


3. insured persons;


5. vehicles involved in the accident; or

6. premiums paid.

Any amounts payable to an insured person under this PART II – EXCESS MEDICAL PAYMENTS COVER-AGE will be reduced by any amounts paid or payable under PART I – LIABILITY TO OTHERS or PART III – UNINSURED/UNDERINSURED MOTORISTS COV-ERAGE.

OTHER INSURANCE If there is other applicable vehicle medical payments insurance, we will pay only our share of the damages. Our share is the proportion that our Limit of Liability bears to the total of all applicable limits. Any insurance we provide for a vehicle, other than a covered vehicle or temporary substitute motor vehicle, will be excess over any other vehicle insurance providing payments for medical or funeral expenses.

However, if other automobile insurance coverage is purchased by you or an insured person for a tempo-rary substitute motor vehicle or a rental private pas-senger automobile, that coverage shall become primary and coverage under this PART II – EXCESS MEDICAL PAYMENTS COVERAGE shall be excess.

Coverage under this PART II – EXCESS MEDICAL PAYMENTS COVERAGE shall be excess to all avail-able liability and uninsured/underinsured motorist cov-erage available for an accident. THIS COVERAGE DOES NOT APPLY TO THAT AMOUNT PAID OR PAYABLE UNDER ANY HEALTH OR ACCIDENT INSURANCE AVAILABLE TO YOU REGARDLESS OF WHETHER THE OTHER COVER-AGE IS PRIMARY, EXCESS, OR CONTINGENT. THIS COVERAGE DOES NOT APPLY TO CARE WHICH THE UNITED STATES GOVERNMENT OR ITS MILI-TARY SERVICES ARE REQUIRED TO PROVIDE TO EMPLOYEES, MEMBERS, OR DEPENDENTS.

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PART III - UNINSURED/UNDERINSURED MOTORIST

COVERAGE INSURING AGREEMENT - UNINSURED/UNDERINSURED MOTORIST BODILY INJURY COV-ERAGE Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability, if you pay a premium for Uninsured/Underinsured Motorist Bodily Injury Cov-erage, we will pay for damages, other than punitive and exemplary damages, which an insured person is le-gally entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily in-jury:

1. sustained by an insured person;

2. caused by accident; and

3. arising out of the ownership, maintenance, or use of an uninsured motor vehicle.

Unless rendered in an action prosecuted by you where Safe Auto Insurance Company is a named and served party, no judgment against any person or entity determining the issue of liability, causation and/or damages shall be persuasive or conclusive in any claim between you and us.

Determination as to whether an insured person is le-gally entitled to recover damages and as to the amount of damages will be made by agreement between the insured person and us.

INSURING AGREEMENT - ECONOMIC LOSS ONLY UNINSUREDIUNDERINSURED MOTORIST BODILY INJURY COVERAGE Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability, if you pay a premium for Economic Loss Only Uninsured/Underinsured Mo-torist Bodily Injury Coverage, we will pay for damages, other than punitive and exemplary damages, which an insured person is entitled to recover from the owner or operator of an uninsured motor vehicle because of bodily injury:

1. sustained by an insured person;


3. arising out of the ownership, maintenance, or use

22

of an uninsured motor vehicle;

which may be measured in specific monetary terms, including, but not limited to:

1. medical costs;

2. funeral expenses;

3. lost wages; and

4. out of pocket expenses.

Unless rendered in an action prosecuted by you where Safe Auto Insurance Company is a named and served party, no judgment against any person or entity deter-mining the issue of liability, causation and/or damages shall be persuasive or conclusive in any claim between you and us.


INSURING AGREEMENT - UNINSURED/UNDERINSURED MOTORIST PROPERTY DAMAGE COVERAGE Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability, if you pay a premium for Uninsured/Underinsured Motorist Property Damage Coverage, we will pay for damages, other than punitive and exemplary damages, which an insured person becomes entitled to recover from the owner or operator of an uninsured motor vehicle due to property dam-age:


2. arising out of the ownership, maintenance, or use of an uninsured motor vehicle.

Uninsured/Underinsured Motorist Property Damage Coverage is subject to a $250.00 deductible per acci-dent. Unless rendered in an action prosecuted by you where Safe Auto Insurance Company is a named and served party, no judgment against any person or entity deter-mining the issue of liability, causation and/or damages shall be persuasive or conclusive in any claim between you and us.

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ADDITIONAL DEFINITIONS When used in this PART III – UNINSURED/UNDERINSURED MOTORIST COVERAGE:

"Insured person" and "insured persons" mean:

1. you or a relative;

2. any person listed on the declarations page as an additional driver;

3. any person occupying a covered vehicle; and

4. any person occupying a private passenger auto-mobile not owned by you which is:

a. rented to you; or

b. a temporary substitute vehicle.

"Property damage" means physical damage to or de-struction of a covered vehicle. It does not include loss of use of the covered vehicle.

"Uninsured motor vehicle" means a land motor vehi-cle or trailer of any type:

1. to which no liability bond or policy applies at the time of the accident;

2. to which a liability bond or policy applies at the time of the accident, but the bonding or insuring com-pany:

a. denies coverage; or

b. is or becomes insolvent;

3. that is a hit-and-run vehicle whose operator or owner is unknown and causes an accident result-ing in bodily injury involving:

a. you, a relative, or any other person listed on the declarations page as an additional driver;

b. a vehicle which you, a relative or any other person listed on the declarations page as an additional driver are occupying; or

c. your covered vehicle;

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if the hit-and-run vehicle caused the injury without physical contact with the insured person or the vehicle the insured person was occupying, the facts of the accident must be supported by an in-dependent and disinterested witness to the acci-dent. We have a right to inspect the vehicle the insured person was occupying at the time of the accident.

4. to which a liability bond or policy applies at the time of the accident, but the total automobile liability insurance coverage on such vehicle is less than the damages which an insured person is entitled to recover from the owner or operator of such vehi-cle.

An uninsured motor vehicle does not include any vehicle, trailer or equipment:

1. owned by you, a relative or any other person listed on the declarations page as an additional driver;

2. owned or operated by a self-insurer under any ap-plicable vehicle law, except a self-insurer that is or becomes insolvent;

3. operated on rails or crawler treads;

4. designed mainly for use off public roads;

5. classified as an all-terrain vehicle, even if the vehi-cle has four (4) wheels;

6. while used as a residence or premises;

7. classified as farm equipment or commercial ma-chinery, including, but not limited to, tractors, bull-dozers, forklifts and self-propelled cranes;

8. shown on the declarations page of this policy; or

9. not required to be registered as a motor vehicle.

EXCLUSIONS - READ THE FOLLOWING EXCLU-SIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART III – UNINSURED/UNDERINSURED MO-TORIST COVERAGE Coverage under this PART III – UNINSURED/UNDERINSURED MOTORIST COVERAGE is not pro-vided for:

25

1. punitive or exemplary damages which are as-sessed against the owner or operator of an unin-sured motor vehicle;

2. bodily injury or property damage arising from an accident, which occurs while your covered vehi-cle is being operated, manipulated, serviced or used in any manner without your express or im-plied permission;

3. bodily injury to an employee of an insured per-son arising out of an accident while the employee is in the course of his or her employment. This does not apply to a household employee who is neither covered nor required to be covered under workers’ compensation insurance, disability bene-fits or similar laws;

4. bodily injury or property damage caused inten-tionally by the insured person or at the insured person’s direction, even if the actual injury or dam-age is different than that which was intended or expected;

5. bodily injury or property damage resulting from the ownership, maintenance or use of any vehicle, other than your covered vehicle, which is owned or hired by, furnished to or available for the regular use of any insured person;

6. bodily injury or property damage arising while the covered vehicle is being operated by a resi-dent of your household or by a regular user of the covered vehicle, unless that person is listed as an additional driver on the declarations page;

7. bodily injury or property damage arising while the covered vehicle is being operated by a person who is listed as an excluded driver on the declara-tions page;

8. bodily injury or property damage resulting from any pre-arranged, organized or spontaneous rac-ing, speed or demolition contest, stunting activity or in practice or preparation for any such contest or activity;

9. bodily injury or property damage sustained while your covered vehicle is being used to flee or elude law enforcement official(s);

10. bodily injury or property damage sustained while

26

your covered vehicle is used in any illicit trade or transportation;

11. bodily injury or property damage which occurs while your covered vehicle is used in the commis-sion of any felony, including theft of your covered vehicle;

12. bodily injury or property damage arising out of the ownership, maintenance or use of your cov-ered vehicle while it is being rented, leased or subleased to others; or

13. bodily injury or property damage arising out of, or due to the ownership, maintenance or use of a vehicle by an insured person for transporting any explosive substance, toxic material, flammable liq-uid or similarly hazardous material;

14. bodily injury or property damage occurring while a covered vehicle is being used as a residence or premises;

15. bodily injury or property damage which occurs while your covered vehicle is being used for snow removal;

16. bodily injury or property damage which occurs while your covered vehicle is used to pull a mo-bile home or trailer which is used as an office, store, display or recreational vehicle;

17. bodily injury or property damage which occurs while your covered vehicle is being towed, or is towing another vehicle;

18. property damage to any property owned by, rented to, being transported by, used by, or in the charge of an insured person. However, this exclu-sion does not apply to a rented residence or a rented garage damaged by a covered vehicle;

19. bodily injury or property damage arising out of an auto business operation, including but not lim-ited to the selling, repairing, servicing, testing, stor-ing or parking of vehicles;

20. bodily injury or property damage for which the United States Government is liable under the Fed-eral Claims Tort Act;

21. bodily injury or property damage for anyone pro-tected under an atomic or nuclear energy liability

27

insurance policy. This exclusion applies even if the limits of that insurance policy are exhausted;

22. bodily injury or property damage caused by war (declared or undeclared), civil war, terrorism, riot, insurrection, rebellion, revolution, nuclear reaction, radiation, radioactive contamination or any conse-quence of these; or

23. property damage if coverage is available under any other property insurance, including, but not limited to, PART IV – DAMAGE TO YOUR VEHI-CLE of this policy;

24. loss or damage to a covered vehicle that is due and confined to:

a. wear and tear;

b. freezing or over heating;

c. mechanical or electrical breakdown or failure; or

d. road damage to tires;

25. loss or damage to wearing apparel or personal effects;

26. to custom parts or equipment, nonstandard parts or accessories unless such items were declared on the application and additional premium has been charged and paid by you; or

27. bodily injury to you, a relative or any other per-son listed on the declarations page as an addi-tional driver while occupying a vehicle (other than a vehicle listed on the declarations page) owned by you or a relative or any other person listed on the declarations page as an additional driver, or through being struck by such a vehicle.

Coverage under this PART III – UNINSURED/UNDERINSURED MOTORIST COVERAGE will not apply directly or indirectly to benefit any property in-surer, or any other insurer or self-insurer under any of the following or similar laws:

1. workers’ compensation law; or

2. disability benefits law.

LIMITS OF LIABILITY The Limit of Liability shown on the declarations page

28

for the coverages shown under this PART III – UNIN-SURED/UNDERINSURED MOTORIST COVERAGE is the most we will pay regardless of the number of:

1. claims made;


3. insured persons;


5. vehicles involved in an accident; 6. premiums paid;

7. claimants; or

8. policies.

Your declarations page shows a split limit. This means:

1. the amount shown for "each person" is the most we will pay for all damages due to a bodily injury to one (1) person. “Bodily injury to one (1) per-son” includes all injury, including bodily injury, and damages to others resulting from this bodily in-jury;

2. subject to the "each person" limit, the amount shown for "each accident" is the most we will pay for all damages due to bodily injury sustained by two (2) or more persons in any one (1) accident; and

3. the amount shown for "property damage" is the most we will pay for the aggregate of all property damage caused by any one (1) accident.

The amount of damages payable under this PART III – UNINSURED/UNDERINSURED MOTORIST COVER-AGE shall be reduced by:

1. all sums paid by or on behalf of any persons or or-ganizations who may be legally responsible, includ-ing, but not limited to, all sums paid under PART I – LIABILITY TO OTHERS;

2. all sums paid or payable under PART II - EXCESS MEDICAL PAYMENTS COVERAGE;

3. the amount of any insured person’s liability or percentage of fault in causing or contributing to the accident or loss that gives rise to the bodily in-

29

jury or property damage claims;

4. all sums paid or payable because of bodily injury under any of the following or similar laws:

a. workers' compensation law; or

b. disability benefits law

Our Limit of Liability under this PART III – UNIN-SURED/UNDERINSURED MOTORIST COVERAGE for property damage to a covered vehicle arising out of one (1) accident is the lowest of:

1. the actual cash value of the covered vehicle at the time of the accident, reduced by the deductible shown on the declarations page and by its sal-vage value if you retain the salvage;

2. the amount necessary to replace the covered ve-hicle, reduced by the deductible shown on the declarations page;

3. the amount necessary to repair the covered vehi-cle to its pre-loss condition, reduced by the de-ductible shown on the declarations page; or

4. any Limit of Liability shown on the declarations page for property damage under this PART III – UNINSURED/UNDERINSURED MOTORIST COV-ERAGE, reduced by the salvage value of the cov-ered vehicle if you or the owner retain the sal-vage.

Payments for property damage under this PART III – UNINSURED/UNDERINSURED MOTORIST COVER-AGE are subject to the following provisions:

1. any amount payable under this PART III – UNIN-SURED/UNDERINSURED MOTORIST COVER-AGE for property damage shall be subject to the deductible shown on the declarations page;

2. no more than one (1) deductible shall be applied to any one (1) accident;

3. an adjustment for depreciation and physical condi-tion will be made in determining the Limit of Liability at the time of the accident; and

4. we retain the exclusive right to list the lien holder or Loss Payee on any settlement check or draft is-sued for property damage hereunder.

30

Any amount paid or payable to a person under PART IV - DAMAGE TO YOUR VEHICLE shall be reduced by any amount paid or payable for property damage un-der this PART III – UNINSURED/UNDERINSURED MOTORIST COVERAGE.

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

OTHER INSURANCE If an insured person sustains bodily injury while oc-cupying a covered vehicle and there is other applica-ble uninsured or underinsured motorist coverage on the covered vehicle for an accident or loss, the insured person must choose one (1) uninsured motor vehicle coverage available to him or her. This coverage will not pay any damages if it is not the coverage chosen by the insured person to apply.

Any insurance we provide for a vehicle, other than a covered vehicle, shall be excess over any primary uninsured or underinsured motorist coverage on the vehicle. If there is more than one applicable excess uninsured or underinsured motorist coverage, the in-sured person must choose one (1) coverage available to him or her. This coverage will not pay any damages if it is not the coverage chosen by the insured person to apply.

If any insured person is injured while not occupying a vehicle, and there is other applicable uninsured or un-derinsured motorist coverage, the insured person must choose one (1) uninsured motor vehicle coverage available to him or her. This coverage will not pay any damages if it is not the coverage chosen by the in-sured person to apply.

We will not pay for any damages which would duplicate any payment made for damages under other insurance.

PART IV - DAMAGE TO YOUR VEHICLE

INSURING AGREEMENT - COLLISION COVERAGE Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability, if you pay a premium for Collision Coverage, we will pay for loss to a cov-ered vehicle for which Collision Coverage has been purchased, when it collides with another object or over-turns, less any applicable deductible and subject to the Limits of Liability. Any deductible shall apply separately

31

to each loss.

INSURING AGREEMENT – COMPREHENSIVE COV-ERAGE Subject to the terms, conditions and exclusions of this policy, and the Limits of Liability, if you pay a premium for Comprehensive Coverage, we will pay for compre-hensive loss to a covered vehicle for which Compre-hensive Coverage has been purchased, less any appli-cable deductible and subject to the Limits of Liability. Any deductible shall apply separately to each loss.

A comprehensive loss is a loss to a covered vehicle or non-owned vehicle caused by any event other than collision, including, but not limited to, any of the follow-ing:

1. contact with an animal (including a bird);

2. explosion or earthquake;

3. fire;

4. malicious mischief or vandalism;

5. missiles or failing objects;

6. riot or civil commotion;

7. theft or larceny; or

8. windstorm, water, hail, or flood.

TRANSPORTATION EXPENSES If you pay a premium for Comprehensive Coverage under this policy, we will pay you up to $10 per day, but not more that a total of $300 per loss, for transportation expenses incurred by you if a covered vehicle is sto-len. This coverage applies only if the declarations page indicates that Comprehensive Coverage is pro-vided for that covered vehicle. Transportation expenses coverage begins forty-eight (48) hours after you report the theft to us and the po-lice department or other civil authority, and ends the earlier of when the covered vehicle has been:

1. recovered and returned to you or its owner; 2. recovered and repaired; or

3. replaced.

However, if the covered vehicle is deemed by us to be

32

a total loss or unrecoverable, transportation expenses coverage ends seventy-two (72) hours after we make a reasonable offer to pay the loss.

You must provide us written proof of your transporta-tion expenses and damages in order to obtain reim-bursement of the same.

We will not pay for the cost of transportation incurred by an insured person if there is a total of theft only of a trailer. Duplicate recovery for identical elements of damages is not permitted under this policy.

If we can pay the loss under either Comprehensive or Collision Coverage, we will pay under the coverage where you collect the most.

ADDITIONAL DEFINITIONS When used in this PART IV – DAMAGE TO YOUR VE-HICLE, terms appearing in bold face will have the fol-lowing meaning:

"Total loss" means:

1. the theft of the covered vehicle if the covered ve-hicle is not recovered within thirty (30) days; or

2. any other loss to the covered vehicle that is pay-able under this PART IV – DAMAGE TO YOUR VEHICLE if the damages sustained equal 75% or more of the market value at the time of loss. The determination will be made by an independent ad-juster hired by us to evaluate the damage to a cov-ered vehicle.

EXCLUSIONS - READ THE FOLLOWING EXCLU-SIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART IV – DAMAGE TO YOUR VEHICLE. Coverage under this PART IV – DAMAGE TO YOUR VEHICLE does not apply for any accident or loss:

1. to a covered vehicle:

a. being used as a public or livery conveyance;

b. while rented or leased to another. This exclu-sion does not apply to the operation of a cov-ered vehicle by you, a relative, or any other person listed on the declarations page as an

33

additional insured;

c. being used in the course of any business or employment, unless you have paid a specific premium for business use coverage;

d. being used as a residence or premises;

e. being used to pull a mobile home or trailer which is used as an office, store, display, or recreational vehicle;

f. being used for the transportation of any explo-sive substance, flammable liquid, or similarly hazardous material;

g. being operated by a resident of your house-hold, other than a relative, or by a regular user of the vehicle unless that person is listed as an additional driver on the declarations page;

h. resulting from any pre-arranged or organized racing, speed or demolition contest, stunting activity, or in practice or preparation for any such contest or activity;

i. caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, nuclear reaction, radiation, radioactive contamination, or any consequence of any of these;

j. for which insurance is afforded under an atomic or nuclear energy liability insurance contract or would be afforded under an atomic or nuclear energy liability insurance contract but for its termination upon exhaustion of its limit of liabil-ity. The reason for this is that by law such poli-cies protect all persons involved in the acci-dent, regardless of fault;

k. for which the United States Government is li-able under the Federal Tort Claims Act;

l. which occurs while a covered vehicle is tow-ing another vehicle;

m. being used without the owner’s permission, or outside the scope of that permission, or by any person who does not have a reasonable belief of being entitled to do so. This does not apply to theft of a covered vehicle;

2. to a covered vehicle, while being used or driven

34

by a person while employed or engaged in the business of selling, leasing, repairing, parking, stor-ing, servicing, delivering, or testing vehicles. How-ever, this exclusion does not apply to you, a rela-tive, any person listed on the declarations page as an additional driver, or their agent or employee, when using a covered vehicle;

3. arising out of the ownership, maintenance or use of a vehicle while it is:

a. being used to flee or elude law enforcement official(s);


c. used in the commission of any felony; or

d. seized by federal or state law enforcement officers as evidence in a case against an in-sured person under the federal Controlled Substances Act, 21 U.S.C. Chapter 13, Sec-tion 801 et seq;

This exclusion applies regardless of whether that insured person is actually charged with, or con-victed of, a crime;

4. to a covered vehicle, caused by an intentional act of you, a relative, or any person listed on the dec-larations page as an additional driver, or at the direction of you, a relative, or any person listed on the declarations page as an additional driver, even if the actual injury or damage is different than that which was intended or expected. This exclu-sion does not apply for a loss to the extent of the legal interest of an innocent coinsured if:

a. the loss is caused as a result of a pattern of domestic violence by you, a relative, or any person residing in your household; and

b. the innocent coinsured claiming the loss:

i. did not cooperate in or contribute to the creation of the loss;

ii. files a police report; and

iii. completes a sworn affidavit for us that indi-cates both the cause of the loss and a pledge to cooperate in any criminal prose-cution of the person who committed the act

35

causing the loss.

We will not make any subsequent payment to any other person for the part of any loss for which the innocent coinsured has received payment;

5. to a covered vehicle, that is due and confined to:

a. wear and tear;

b. freezing;

c. mechanical or electrical breakdown or failure;

d. road damage to tires; or

e. manufacturer’s defects.

This exclusion does not apply if the damage results from the theft of a covered vehicle;

6. due to theft or conversion of a covered vehicle:

a. by you, a relative, any person listed on the declarations page as an additional driver, or any resident of your household;

b. before its delivery to you, a relative, or any person listed on the declarations page as an additional driver; or

c. while in the care, custody, or control of anyone engaged in the business of selling the vehi-cle;

7. to wearing apparel or personal effects;

8. to any device used for the detection or location of radar, laser, or other speed measuring equipment or its transmissions;

9. to any of the following optional equipment whether or not factory installed by the original auto manu-facturer:

a. car telephone equipment;

b. televisions or their accessories or antennas;

c. home high fidelity equipment;

d. two-way radios;

e. scanning monitor receivers; or

f. awnings, cabanas, or equipment designed to provide additional living facilities;

36

10. while the covered vehicle is subject to any bail-ment, lease, conditional sale, mortgage, or other encumbrance not specifically declared and de-scribed on this policy;

11. to custom parts or equipment;

12. to a covered vehicle, for diminished value;

13. arising out of the ownership, maintenance or use of your covered vehicle during the course and scope of the operator’s employment or for com-mercial use;

14. arising out of the ownership, maintenance or use of a covered vehicle by a person listed as an ex-cluded driver on the declarations page;

15. while your covered vehicle is being operated by a resident of your household or by a regular user of your covered vehicle, unless that person is listed as an additional driver on the declarations page;

16. caused directly or indirectly by mold, mildew or fun-gus, including any type or form of:

a. decomposing or disintegrating organic material or microorganism;

b. organic surface growth on moist, damp, or de-caying matter;

c. yeast or spore-bearing plant-like organism; or

d. spores, scents, toxins, bacteria, viruses, or any other by-products produced or released by any mold, mildew, fungus or other microbes.

However, this exclusion does not apply to loss caused by mold, mildew or fungus, if such loss is caused by any other loss covered under this Part IV.

LIMIT OF LIABILITY The Limit of Liability for loss to a covered vehicle is

the lowest of:

1. the actual cash value of the stolen or damaged property at the time of the loss, reduced by the applicable deductible shown on the declarations page, and by its salvage value if you or the owner retain the salvage;

2. the amount necessary to replace the stolen or

37

damaged property, reduced by the applicable de-ductible shown on the declarations page, and by its salvage value if you or the owner retain the sal-vage; or

3. the amount necessary to repair the damaged prop-erty to its pre-loss condition, reduced by the appli-cable deductible shown on the declarations page; or

4. the amount stated on the declarations page of this policy

If more than one (1) vehicle is shown on your declara-tions page, coverage will be provided as specified on the declarations page as to each vehicle.

Determination as to the amount of damages due to loss to a covered vehicle will be made by agreement between the Named Insured listed on the declarations page of this policy and us. If no agreement is reached, any lawsuit against us for benefits under this Part IV – DAMAGE TO YOUR VEHICLE must be commenced within one (1) year after the date the loss occurred.

Any payment to a person under this PART IV – DAM-AGE TO YOUR VEHICLE shall be reduced by any amount paid for property damage under PART III – UNINSURED/UNDERINSURED MOTORIST COVER-AGE of this policy, if when doing otherwise would result in double recovery.

Payments for loss covered under Collision Coverage and Comprehensive Coverage are subject to the fol-lowing provisions:

1. no more than one (1) deductible shall be applied to any one (1) covered loss;

2. the actual cash value will be determined by the market value, age and condition at the time the loss occurs;

3. an adjustment for depreciation and physical condi-tion, including a reduction for unrepaired prior dam-age, will be made in determining the Limit of Liabil-ity at the time of loss. Unrepaired prior damage includes broken, cracked, or missing parts; rust; dents; scrapes; gouges; and peeling paint. The reduction for unrepaired period damage is the cost of labor, parts, and materials necessary to repair or replace damage, deterioration, defects, or wear

38

and tear on exterior body parts, windshields and other glass, wheels, and paint, that existed prior to the accident and that is eliminated as a result of the repair or replacement of property damaged in the loss;

4. in determining the amount necessary to repair damaged property to its pre-loss condition, our estimate will be based on:

a. the prevailing competitive labor rates charged in the area where the property is to be re-paired, as reasonably determined by us; and

b. the cost of repair or replacement parts and equipment which may be new, refurbished, restored, or used, including, but not limited to:

i. original manufacturer parts and equipment; and

ii. non-original manufacturer parts or equip-ment;

5. the actual cash value is determined by the market value, age and condition of the vehicle at the time the loss occurs. An adjustment for depreciation and physical condition will be made in determining the actual cash value at the time of the loss; and

6. duplicate recovery for identical elements of dam-ages is not permitted under this policy.

INSURING AGREEMENT - RENTAL REIMBURSE-MENT

Subject to the terms, conditions and exclusions of this policy, and Limits of Liability, if you pay the premium for Rental Reimbursement Coverage, we will reimburse rental charges incurred when you rent a temporary substitute motor vehicle due to a loss to a covered vehicle that is payable under Comprehensive Cover-age or Collision Coverage under this Part IV. However, this coverage:

1. does not apply to the theft of a covered vehicle; and

2. applies only to loss to a covered vehicle for which this coverage has been purchased.

Additional fees or charges for insurance, damage waiv-ers, optional equipment, fuel, or accessories are not

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covered.

Our Limit of Liability is the amount and the number of days shown on the declarations page.

If Rental Reimbursement Coverage applies, no other coverage under this policy for transportation expenses will apply.

Rental charges will be reimbursed beginning:

1. when the covered vehicle cannot be driven due to a loss; or

2. if the covered vehicle can be driven, when you deliver the covered vehicle to a vehicle repair shop for repairs due to the loss;

and ending the earlier of when the covered vehicle has been:

1. returned to you;

2. repaired or replaced.

However, if the covered vehicle is deemed by us to be a total loss, subject to the applicable Limit of Liability, rental charges will be reimbursed until forty-eight (48) hours after we make an offer to pay the applicable Limit of Liability under this Part IV.

You must provide us with written proof of your rental charges.

Duplicate recovery for identical elements of damages is not permitted under this policy.

PAYMENT OF LOSS

We may, at our option:

1. pay for the loss in money; or

2. repair or replace the damaged or stolen property.

At our expense, we may return any recovered stolen property to you or to the address shown on the decla-rations page, with payment for any damage resulting from the theft. We may keep all or part of the property at the agreed or appraised value. We may settle any loss either with you or the owner or lien holder of the property. We will pay the amount of any claim due any insured person within thirty (30) days after receipt of satisfactory proofs of loss from the insured person or any party in interest

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NO BENEFIT TO BAILEE Coverage under this PART IV – DAMAGE TO YOUR VEHICLE shall not directly or indirectly benefit any car-rier or other bailee for hire.

LOSS PAYEE AGREEMENT Payment for a loss to a covered vehicle will be made according to your interest and the interest of any Loss Payee or lien holder shown on the declarations page or designated by you. Payment may be made both jointly, or separately, at our discretion.

Where secretion, conversion, or embezzlement has been committed by or at the direction of an insured person, the Loss Payee or lien holder's interest will not be protected.

We will be entitled to the Loss Payee or lien holder's rights of recovery, to the extent of our payment to the Loss Payee or lien holder.

In the event we become obligated to make a payment to the Loss Payee or lien holder because of a loss due to an insured person's intentional act, then you must reimburse us for any payment or expense incurred by us.

OTHER INSURANCE If there is other applicable coverage for a covered ve-hicle, we will pay only our share. Our share is the percent that our Limit of Liability bears on the total of all coverage that applies. However, if other automobile insurance coverage is purchased by you or an insured person for a temporary substitute motor vehicle or rental private passenger automobile, that coverage shall become primary and coverage hereunder shall be excess to that coverage.

Any insurance we provide for a vehicle, other than a covered vehicle, shall be excess over any other col-lectible source of recovery.

NON BINDING APPRAISAL If we cannot agree with you on the amount of a loss, then we or you may demand an appraisal of the loss. If so, each party shall appoint a competent and impar-tial appraiser. The appraisers will determine the amount of loss. If they fail to agree, the disagreement will be submitted to a qualified and impartial umpire

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chosen by the appraisers. A decision agreed to by any two will determine the amount payable under this PART IV – DAMAGE TO YOUR VEHICLE but will not be binding on any party. You will pay your appraiser's fees and expenses. We will pay our appraiser's fees and expenses. Payment of the umpire and all other expenses of the appraisal will be shared equally by us and you. Neither we nor you waive any rights under this policy by agreeing to an appraisal.

Nothing in this provision shall deprive you of your right to bring a court action to recover any sums due under this policy.

OTHER SOURCES OF RECOVERY If other sources of recovery also cover the loss, we will pay only our share of the loss. Our share is the pro-portion that our Limit of Liability bears to the total of all applicable limits. However, any insurance we provide for a non-owned vehicle not shown on the declara-tions page will be excess over any other collectible source of recovery including, but not limited to:

1. any coverage provided by the owner of the non-owned vehicle;

2. any other applicable physical damage insurance; or

3. any other source of recovery applicable to the loss.

PART V – TOWING AND LABOR

INSURING AGREEMENT Subject to the terms, conditions and exclusions of this policy, and Limits of Liability shown on the declara-tions page, if you pay the premium for Towing and Labor Coverage, we will pay the costs incurred by you for towing and labor due to the disablement of a cov-ered disabled vehicle. Coverage under this Part V applies subject to the following:

1. you are limited to six (6) occurrences per six (6) month policy period;

2. labor on a covered disabled vehicle must be per-formed at the place of disablement; and

3. the location of the disablement of a covered dis-abled vehicle cannot be your residence.

ADDITIONAL DEFINITIONS

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When used in this Part V – TOWING AND LABOR:

1. “Covered disabled vehicle” means a disabled covered vehicle for which Towing and Labor Cov-erage has been purchased.

2. “Disablement” means the disablement of a cov-ered disabled vehicle due to:

a. mechanical or electrical breakdown;

b. battery failure;

c. lack of fuel, oil, or water;

d. flat tire;

e. lock-out; or

f. entrapment within 100 feet of a public road or highway.

EXCLUSIONS – READ THE FOLLOWING EXCLU-SIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART V – TOWING AND LABOR. Coverage under this Part V – TOWING AND LABOR does not apply to:

1. the cost of purchasing parts, fluid, lubricants, fuel or replacement keys;

2. installation of products or materials not related to the disablement;

3. labor not related to the disablement; 4. labor on a covered disabled vehicle for any time

period in excess of sixty (60) minutes per disable-ment;

5. towing or storage related to impoundment, aban-donment, illegal parking, or other violations of law;

6. towing from a service station, garage, or repair shop;

7. labor or repair work performed at a service station, garage, or repair shop;

8. vehicle storage charges;

9. a second service call or tow for a single disable-ment;

10. disablement that occurs on roads not regularly

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maintained, sand beaches, open fields, or areas designated as not passable due to construction;

11. mounting or removing of snow tires or chains; or

12. disablement that results from the intentional or willful act or actions by you, a relative, or the op-erator of a disabled covered vehicle.

PART VI – ACCIDENTAL DEATH BENEFIT

INSURING AGREEMENT Subject to the terms, conditions, and exclusions of this policy, and Limit of Liability, if you pay the premium for the Accidental Death Benefit, we will pay the benefit limit in the event of the accidental death of an insured person. The Accidental Death Benefit is payable only after we are furnished with:

1. a copy of the insured person’s death certificate; and

2. a sworn statement from the legal representative of the insured person’s estate which identifies all persons entitled to benefits resulting from the in-sured person’s death.

ADDITIONAL DEFINITIONS When used in this Part VI:

“Accidental death” means the death of an insured person that:

1. is a direct result of bodily injury sustained in an accident arising from the ownership, maintenance, or use of a covered vehicle; and

2. occurs within ninety (90) days of the date the bod-ily injury was sustained.

“Insured person” or “insured persons” means:

1. you; or

2. any other person shown on the declarations page as an additional driver.

EXCLUSIONS – READ THE FOLLOWING EXCLU-SIONS CAREFULLY. IF AN EXCLUSION APPLIES, BENEFITS WILL NOT BE AFFORDED UNDER THIS PART VI – ACCIDENTAL DEATH BENEFIT. Coverage under this Part VI – ACCIDENTAL DEATH BENEFIT does not apply to an accident that:

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1. occurs while a covered vehicle is being used as a public or livery conveyance. This exclusion does not apply to an accident arising from the use of a covered vehicle in a shared expense car pool;

2. occurs while a covered vehicle is being used for snow removal, or any kind of wholesale or retail delivery, including but not limited to food, maga-zine, flowers, newspaper, mail or other business types of delivery;

3. occurs while a covered vehicle is being used in a commercial capacity;

4. occurs while a covered vehicle is being used dur-ing the course of an insured person’s employ-ment to transport people, including but not limited to nursery school children, medical patients, cli-ents, hotel guests, and the like;

5. occurs while a covered vehicle is being used to transport explosives, flammable liquid, or similarly hazardous material;

6. occurs while a covered vehicle is being towed, or towing another vehicle;

7. arises out of the ownership maintenance or use of any vehicle, other than a covered vehicle, which is owned by you, a resident, or an insured per-son, furnished to or available for your, a resident’s, or an insured person’s regular use;

8. occurs while an insured person is occupying a covered vehicle while being used as a residence or premises;

9. is caused intentionally by an insured person or at an insured person’s direction, even if the actual injury or damage is different than that which was intended or expected;

10. occurs while an insured person is engaged or in-volved in any illicit trade or transportation;

11. occurs while an insured person is fleeing or elud-ing law enforcement officials;

12. occurs while an insured person is engaged in the commission of a crime;

13. results from any pre-arranged or organized racing, speed or demolition contest, stunting activity, or in

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practice or preparation for any such contest or ac-tivity;

14. is caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, nuclear re-action, radiation, radioactive contamination, or any consequence of any of these;

15. occurs while an insured person is occupying a covered vehicle while being used off of public or private roads for race, sport, rally or other recrea-tional purposes; or

16. occurs while an insured person is not wearing a factory installed seat belt and lap or shoulder re-straint, as verified by the investigating law enforce-ment officer.

LIMIT OF LIABILITY The Accidental Death Benefit Limit of Liability shown on the declarations page is the most we will pay for the accidental death of each insured person regard-less of the number of:

1. claims made;


3. insured persons;


5. vehicles involved in the accident; 6. premium paid; or

7. policies.

At no time will we owe more than the Accidental Death Benefit Limit of Liability for the accidental death of each insured person that is otherwise covered under this Part VI.

PAYMENT OF BENEFITS The Accidental Death Benefit Limit of Liability shown on the declarations page will be paid in the event of the accidental death of an insured person to the fol-lowing, in order of priority. Benefits are payable to the insured person’s: 1. spouse;

2. children, if there is no surviving spouse;

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3. parents, if there are no surviving children; or

4. estate, if there are no surviving parents.

If a benefit hereunder becomes payable to a deceased insured person’s children or parents, each such child or parent will be entitled to an equal portion of the benefit, provided that the total amount of such benefit will not exceed the Accidental Death Benefit Limit of Liability shown on the declarations page.

OTHER INSURANCE Benefits under this Part VI are primary and shall not reduce, or be reduced by, any other coverage or bene-fit provided under this policy.

GENERAL PROVISIONS

BUSINESS USE COVERAGE If you pay the additional premium for coverage for business use, we will pay for loss that arises from your business use of a covered vehicle subject to the coverages shown on the declarations page, and the terms, conditions and exclusions described throughout this policy, and applicable Limits of Liability.

POLICY PERIOD AND TERRITORY This policy applies only to accidents and losses oc-curring during the policy period shown on the declara-tions page and occurring within any state or territory of the United States of America, or any province of Can-ada.

POLICY CHANGES This policy, your insurance application (which is made a part of this policy as if attached hereto), the declara-tions page, as amended, and endorsements issued by us to this policy contain all the agreements between you and us. Subject to the following, its terms may not be changed or waived except by an endorsement is-sued by us.

The premium for each vehicle is based on information we received from you or other sources at the inception of your policy. You agree to cooperate with us in de-termining if this information is correct and complete, and you will notify us if any information, representa-tions or warranties change during the policy period. If this information is incorrect, incomplete, or changes

47

during the policy period, we may adjust your premium during the policy period, or take other appropriate ac-tion. To properly insure your vehicle, you must promptly notify us when:

1. an insured person changes their address;

2. an insured person changes occupation or employ-ers;

3. any resident operators are added or deleted;

4. an insured person acquires an additional or re-placement vehicle;

5. an insured person’s marital relationship is termi-nated;

6. the principal garaging address for a covered vehi-cle shown in the declarations page changes;

7. you or a relative obtain a driver’s license or opera-tor’s permit; or

8. there is a change with respect to the residents in your household or the persons who regularly oper-ate a covered vehicle.

Changes that may result in a premium adjustment are contained in our rates and rules. These include, but are not limited to:

1. changes in the number, type, or use classification of covered vehicles;

2. changes in operators using covered vehicles, their ages, or marital status;

3. a relative obtaining a driver's license or operator's permit;

4. changes in the place of principal garaging of any covered vehicle;

5. changes in coverages, deductibles, or limits of li-ability; or

6. changes in rating territory or discount eligibility.

TWO OR MORE POLICIES ISSUED BY US If any part of this policy, or any other policies issued by us, or any company affiliated with us, insure you or an insured person as a Named Insured or an additional insured, and apply to the same accident, the aggre-gate limit of liability under all such policies shall not ex-

48

ceed the highest applicable limit of liability under any one policy.

TERMS OF POLICY CONFORMED TO STATUTES Any term or condition contained in this policy that is in conflict with a statute of the State of Louisiana is amended to conform to such statute; however, the terms and conditions of this policy that are not in con-flict with any Louisiana statute remain in full force and affect as written.

TRANSFER OF YOUR INTEREST Interest of this policy may not be assigned or trans-ferred to another person without our written consent. If a Named Insured dies, this policy will provide the same coverages until the end of the policy period for:

1. the surviving spouse, if domiciled in the same household as the deceased Named Insured at the time of death; and

2. the legal representative of the deceased person while acting within the scope of his/her duties as the legal representative of the deceased. This ap-plies only with respect to the legal representative’s legal responsibility to maintain or use the covered vehicle.

NUMBER OF VEHICLES LISTED Four (4) is the maximum number of covered vehicles that may be listed on your policy.

FRAUD OR MISREPRESENTATION This policy was issued in reliance upon the information provided on your insurance application. We may void this policy if you or an insured person, with the intent to deceive, have knowingly concealed or misrepre-sented any material fact or circumstance, or engaged in fraudulent conduct, at the time the application was made.

We may deny coverage under this policy if you or an insured person, with the intent to deceive, have know-ingly concealed or misrepresented any material fact or circumstance, or engaged in fraudulent conduct, in connection with the presentation or settlement of a claim.

No coverage will be provided to any person who has,

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with the intent to deceive, knowingly concealed or mis-represented any material fact or circumstance, or en-gaged in fraudulent conduct, in connection with the presentation or settlement of a claim.

We may also cancel this policy, and deny coverage for an accident or loss, if you or an insured person, with the intent to deceive, have knowingly concealed or mis-represented any material fact or circumstance, or en-gaged in fraudulent conduct, in connection with the presentation or settlement of a claim.

PAYMENT OF PREMIUM By the terms of this policy, your installment payments are due fifteen (15) days before your current payment is exhausted. Failure to make this payment timely will result in your account being in arrears.

If you tender a check to us for any full or partial pay-ment of your premium, and the check is returned to us because of insufficient funds, a closed account, or a stop payment, a service charge will be added to your account balance.

LATE PAYMENT If your installment payment is not received by the due date, a Notice of Cancellation will be mailed to the ad-dress shown on the Declarations Page. If your re-newal payment is not received by the due date, this policy will automatically terminate at the end of the pol-icy period. In order to avoid a lapse in, or termination of, your coverage, your installment or renewal pay-ment must be received in our office on or before the due date shown on your Notice of Cancellation or Re-newal Offer. Payment effective dates and times vary depending on the payment method:

1. payments made through the Safe Auto Check by Phone system are effective the date and time the checking account information is relayed to the Cus-tomer Service Representative or our Automated Attendant, converted to Eastern Time Zone;

2. payments made through money wire services are effective the date and time printed on the receipt, converted to Eastern Time Zone;

3. payments made via credit card are effective the date and time the transaction is approved by the creditor, converted to Eastern Time Zone;

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4. payments mailed via the United States Postal Ser-vice with a legible postmark are effective at 12:01 A.M. the day after the postmark date shown on the payment envelope;

5. payments made via a nationally recognized and bonded overnight carrier with a legible received date and time are effective the day and time the overnight carrier receives the payment;

6. payments mailed via the United States Postal Ser-vice with an illegible postmark, United States Postal Service mailed payments with no postmark, payments made by an overnight carrier with an illegible received date and time, or payments made by an overnight carrier with no received date and time are effective at 12:01 A.M. the day we receive the payment envelope;

7. payments delivered via a same day carrier are ef-fective the date and time we receive the payment;

8. internet-based check payments are effective the date and time the payment information is received by Safe Auto Insurance Company and the “make check payment” button is clicked;

9. internet-based credit card payments are effective the date and time the transaction is approved by the creditor; or

10. payments made at ACE Check Cashing locations are effective the date and time printed on the ACE Check Cashing receipt.

If the installment payment effective date and time is before the cancellation date and time shown on your Notice of Cancellation, the policy will not cancel. If your installment payment is effective after the cancellation date and time shown on your Notice of Cancellation, your policy will cancel on that date and at that time. Your policy will not terminate if the renewal payment effective date and time is before the expiration date and time shown on your Renewal Notice. Your policy will terminate if your renewal payment is effective after the expiration date and time shown on your Renewal Notice.

We will not accept late payments more than seven (7) days after your policy has cancelled or terminated. In the event we accept your late installment payment and

51

reinstate your policy, no coverage will apply to any loss or accident occurring during the period between the cancellation or termination date and time and the reinstatement date and time. In the event that this pol-icy is reinstated, it will reinstate under the same policy terms, limits, conditions, elections, and exclusions which were in effect before cancellation. Your policy expiration and/or renewal date will remain unchanged if this policy is reinstated.

We reserve the right not to accept late payments on cancelled or terminated policies.

Some of these terms and conditions do not apply if we have certified your policy under the financial responsi-bility laws of Louisiana. In such case, we will notify you of any additional restrictions that may apply.

CANCELLATION You may cancel this policy by written notice to us of your intent to cancel and surrender of your policy be-fore or on the effective date of such cancellation. In the event your policy cannot be surrendered because it was lost or destroyed, you may provide to us a written statement setting forth the facts of such loss or destruc-tion.

If we have certified your policy under the financial re-sponsibility laws of Louisiana and you request to can-cel this policy mid-term, we will cancel the policy the earliest of:

1. twelve (12) days after the date of your request to allow ten (10) days notice to the Louisiana Office of Motor Vehicles as required by state law; or

2. effective the date requested, if the cancellation date you request is more than twelve (12) days in the future.

We may cancel this policy by mailing a notice of can-cellation to the Named Insured shown on the declara-tions page at the last known address appearing on our records.

If we cancel this policy for non-payment of premium, notice will be mailed at least ten (10) days before the effective date of cancellation. If the premium was not paid because a check, draft, or other remittance, other than cash, was not honored upon presentment, cancel-lation shall be effective as of the date and time shown

52

on the Notice of Cancellation that would have applied to the payment that was not honored. This means that we will not be liable after the premium due date for any claims or damages which would otherwise be covered if the check, draft, or other remittance had been hon-ored. The cancellation shall remain effective unless, within ten (10) days of the date the notice of cancella-tion was mailed, you or your legal representative ei-ther:

1. redeem the dishonored check, draft, or remittance; or

2. present to us a cashier's check or money order for the full amount of the returned check, draft, or other remittance.

If the dishonored check, draft, or remittance is re-deemed or replaced within the ten (10) day period, the coverage will be reinstated as of the premium due date.

If we cancel this policy for any reason other than non-payment of premium, notice will be mailed at least thirty (30) days before the effective date of cancellation.

If you do not pay the required premium for this policy when due, we may cancel this policy at any time.

We may cancel this policy for any other reason within the first sixty (60) days of the policy period shown on the declarations page.

After this policy is in effect for sixty (60) days, or if this is a renewal or continuation policy, we may cancel only for one (1) or more of the following reasons:

1. you do not pay the required premium for this policy when due;

2. fraud or misrepresentation by you of any material fact in your insurance application or in the submis-sion of any claim under this policy;

3. loss of driving privileges through suspension or revocation of your operators license or motor vehi-cle registration or that of a person residing in the same household as you or who customarily oper-ates a covered vehicle; or

4. nonreceipt by us of your application after we have issued a binder.

We will mail notice of cancellation to the Named In-

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sured shown on the declarations page at the last known address for the Named Insured appearing in our records.

Upon cancellation, you may be entitled to a premium refund. Our making or offering a refund is not a condi-tion of cancellation.

If we cancel this policy, any refund due will be com-puted on a daily pro-rata basis. The effective date of cancellation shown in a notice will be the end of the policy period.

If cancellation is at your request, any refund due will be computed on a ninety percent (90%) of a daily pro-rata basis. This is a daily, accelerated method of calculating short rate earned premium on cancellations. Earned premium is calculated on a daily basis. We will supply a copy of the table to you upon request.

NONRENEWAL If we decide not to renew or continue this policy, other than for nonpayment of premium, we will mail notice of nonrenewal to the Named Insured shown on the decla-rations page at the last known address appearing in our records. Notice will be mailed at least twenty (20) days before the end of the policy period.

This policy will automatically terminate at the end of the policy period if you do not accept our offer to renew or continue it. Your failure to pay the required continua-tion or renewal premium means that you have declined our offer.

AUTOMATIC TERMINATION Coverage for a covered vehicle shall automatically terminate:

1. when a person other than you or a relative be-comes the owner of the vehicle;

2. on the effective date of any other motor vehicle insurance policy covering that vehicle; or

3. if you fail to accept an offer of renewal of this insur-ance, this coverage will automatically terminate at the end of the current policy period. Failure to pay the required renewal or continuation premium when due will mean that you have not accepted our of-fer.

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PROOF OF NOTICE Proof of mailing of any notice will be sufficient proof of notice.

COVERAGE CHANGES If we make a change which broadens a coverage you have under this edition of your policy, you will receive the broadened coverage without additional charge. The broadened coverage applies on the date the cov-erage change is implemented in your state. This provi-sion does not apply to a general program revision or our issuance of a subsequent edition of your policy. Otherwise, this policy can be changed only by endorse-ment issued by us.

LEGAL ACTION AGAINST US A person or organization may bring an action against us including, but not limited to an action to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of the Coverage Part or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative.

OUR RIGHTS TO RECOVER PAYMENT If we make any payment under this policy, we are enti-tled to all the rights of recovery that the person to, or for, whom payment is made has against another up to the amount that we have paid out under this policy. Any amount recovered in excess of our payments made belongs to the insured. That person or organiza-tion must sign and deliver to us any legal papers relat-ing to that recovery, do whatever else is necessary to help us exercise those rights, and do nothing after the loss to harm our rights.

If we make any payment under this policy and the per-son to, or for, whom payment is made has a right to recover damages from another, we shall be subrogated to that right. However, our right to recover is subordi-nate to the insured’s right to be fully compensated. That person or organization must sign and deliver to us any legal papers relating to that recovery, do whatever else is necessary to help us exercise those rights, and do nothing after the loss to harm our rights.

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We are to be repaid our payments, costs and fees of collection out of any recovery.

BANKRUPTCY The bankruptcy or insolvency of an insured person will not relieve us of any obligations under this policy.

TWO OR MORE VEHICLES INSURED With respect to any accident or occurrence to which this and any other auto policy issued to you by Safe Auto Insurance Company applies, the total limit of our liability under all the policies shall not exceed the high-est applicable Limits of Liability under any one (1) pol-icy.

LOSS PAYABLE CLAUSE Loss or damage under this policy shall be paid, as in-terest may appear, to you and the loss payee as shown on the declarations page. When we pay the loss payee, we shall, to the extent of our payment, be subrogated to the loss payee’s rights of recovery.

NAMED DRIVER EXCLUSION If you have asked us to exclude any person from cov-erage under this policy, then we will not provide cover-age for any claim arising from an accident or loss in-volving a covered vehicle being operated by an ex-cluded person. THIS INCLUDES ANY CLAIM FOR DAMAGES MADE AGAINST YOU, A RELATIVE, OR ANY OTHER PERSON OR ORGANIZATION THAT IS VICARIOUSLY LIABLE FOR AN ACCIDENT ARISING OUT OF THE OPERATION OF A COVERED VEHI-CLE OR NON-OWNED VEHICLE BY THE EX-CLUDED DRIVER.

NAMED OPERATOR - NON-OWNED VEHICLE COV-ERAGE

If you elect Named Operator — Non-Owned Vehicle Coverage, you agree with us that the policy is amended as follows:

GENERAL DEFINITIONS 1. The general policy definition of “you” and “your” is

deleted and replaced by the following:

“You” and “your” mean the person shown as the named insured on the declarations page.

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2. The general policy definitions of “covered vehicle” and “non-owned vehicle” are deleted and re-placed by the following:

“Covered vehicle” and “non-owned vehicle” mean any vehicle that is not owned by you.

PART I — LIABILITY TO OTHERS ADDITIONAL DEFINITION: When used in PART I – LIABILITY TO OTHERS, the definition of “insured per-son” and “insured persons” is deleted and replaced by the following:

“Insured person” and “insured persons” mean:

1. you, when operating or using a vehicle, other than a vehicle owned by you or a relative, with the express or implied permission of the owner; and

2. any person or organization with respect only to vi-carious liability for an accident arising out of the use of a non-owned vehicle by you with the ex-press or implied permission of the owner.

OTHER INSURANCE: the Other Insurance provision under PART I – LIABILITY TO OTHERS is deleted and replaced by the following:

OTHER INSURANCE Any insurance we provide shall be excess over any other applicable liability insurance, or self insurance bond.

PART II - EXCESS MEDICAL PAYMENTS COVER-AGE ADDITIONAL DEFINITIONS: When used in PART II – EXCESS MEDICAL PAYMENTS COVERAGE, the definition of “insured person” and “insured persons” is deleted and replaced by the following:

“Insured person” and “insured persons” mean you, while occupying a covered vehicle or non-owned vehicle, or when struck by a motor vehicle or trailer while not occupying a motor vehicle.

If you pay a premium for Excess Medical Payments Coverage, and it is shown on the declarations page, any insurance we provide shall be excess over any other similar insurance or self-insurance.

PART III — UNINSURED/UNDERINSURED MOTOR-

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IST COVERAGE If you pay a premium for Uninsured/Underinsured Mo-torist Coverage, and it is shown on the declarations page:

1. When used in PART III – UNINSURED/UNDERINSURED MOTORIST COVERAGE, the Additional Definition of “insured person” and “insured persons” is deleted and replaced by the following:

“Insured person” and “insured persons” mean:

a. you, when operating or using a covered vehicle with the express or implied permis-sion of the owner; and

b. any person who is entitled to recover dam-ages covered by PART III – UNINSURED/UNDERINSURED MOTORIST COVER-AGE because of bodily injury to you.

2. The Other Insurance provision under PART III – UNINSURED/UNDERINSURED MOTORIST COV-ERAGE is deleted and replaced by the following:

All other terms, limits, and provisions of this policy re-main unchanged.

In witness whereof, we have caused this policy to be executed and attested by our President and Secretary.

FORM LA1010/1008

Safe Auto Insurance Company a stock company

Corporate Office:

4 Easton Oval Columbus, Ohio 43219

(614) 231-0200 1(800) SAFE-AUTO

1(800) 723-3288

louisiana personal automobile policy - … · damage and arises out of the ownership, maintenance...

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