Liability & auto physical damage Two areas that have a direct impact on the exposure regarding equipment are the model year of the equipment and use of equipment. The model year is addressed in the table below. If all units are 12 years old and newer and most are within 5 years old the risk is above average and will qualify for schedule credits. If all equipment is not 12 years old or newer, the equipment is below average and should be debited.
Any unit >22
Any units between
22 and 12 years
3% - 5%
1% - 2%
0 All units 12 years old or
1% - 2 % 50% or more of units are 5 years old or newer
3% - 5% All units are 5 years old or
The exposure of hauling double trailers will require a 2% debit.
c. Class Characteristics (Unusual features of risk)
Since class characteristics are difficult to quantify, any credit or debit from this section shall be administered by company underwriting. Items that will be considered will be verifiable conditions that are unique to the risk. Examples of items considered are: extremely low/high use of vehicles, operation on a tightly controlled job site, unusual safe or hazardous conditions as a result of crime, vandalism or locations not normally contemplated in the rate.
Drivers should be selected on the basis of aptitude and ability to meet company standards for operating insured vehicles. Proper supervision and controls should be in place to insure safe drivers are employed. Two essential components in driver quality are experience in operating the size and type of equipment and length of time with the company. Significant changes in driver experience or time with the company mid policy term may be adjusted during the policy term. Credits and debits for this section will be determined as follows:
Experience of Drivers …4% Credit to 4% Debit
Debits 4% --------1%
Any risk with drivers < 2 years experience
All drivers with 2 or more years experience
All drivers with 3 or more years experience
The following guide must be used to apply schedule rating for drivers experience as defined above.
CSE Safeguard Insurance Company
CA underwriting guide 0707