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COMMERCIAL AUTO INDIVIDUAL RISK PREMIUM MODIFICATION PLAN (IRPM) - page 2 / 4

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b. Equipment

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.

Debits

Any unit >22

Any units between

years old

22 and 12 years

old

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

newer

newer

Average

Credits

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.

d. Drivers

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%

Average 0%

Credits 1%---------4%

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

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