Section G – Garage Section FACILITY ASSOCIATION G.pdf · The original manual changed the rate to 70¢ plus the full fire rate. As this resulted in increases of up to 400% of the

Section G – Garage Section

Ontario – August 2001

FACILITY ASSOCIATION

January 2001

Subject: New Garage Section

The following are the main changes to the Garage Rating :

The major change concerns the rating of Automobile Dealers and Repair Garages and the development of a staffunit rate to replace the payroll rate.

Rather than the current method of multiplying the Payroll amount by a rate per $1000 of the payroll, you simplycharge a flat dollar amount for each Staff Unit, eliminating considerable calculation time and effort.

Currently Automobile Dealer risks are rated on the basis of the number of persons engaged in the garage operation,regardless of the number of automobiles being used for non garage use by the owners of the garage, unless thenumber of dealer plates exceeds the number of full time staff.

This method does not rate the exposure of the use of each owned automobile, which can vary widely between different risks.

The new rating methodology results in a lower staff unit premium. However it requires an additional premiumfor any owned vehicle covered by the garage policy, based upon the use of that vehicle. Premiums for regularlyplated vehicles, dealer plates and SEF 76 are determined in accordance with the rules of the applicable section ofthe manual (Private Passenger, Commercial, Recreational). There is no charge if a vehicle is covered elsewhere.

The minimum deductible for Owned Automobiles Collision has been increased to $1000. In the past theComprehensive and Specified Perils deductible was 5% of the amount of insurance resulting in a very highdeductible for higher amounts of insurance. The deductible is now determined from the number of vehicles andis somewhat lower.

Dealer plates in excess of the number of staff units and not charged for under Owned vehicles, are charged at a rate of 25% of the Class 07 premium instead of the current full Class 07 premium. Credit is allowed for at-faultaccident free experience up to Driving Record 3.

Repair Garages, Physical Damage for Owned Automobiles, Alberta and PEI :

Currently Repair Garages for all provinces require the attachment of SEF 71 to exclude owned automobiles. The new rating methodology eliminates this requirement for Alberta and PEI.. In addition to the basic garage premium, anadditional premium is charged for any owned vehicle covered by the terms of the garage policy, based upon the useof that vehicle. As with Automobile Dealers, premiums for owned vehicles and SEF 76 will be determined inaccordance with the rules of the applicable section of the manual. For Repair Garages in Alberta and PEI physicaldamage for owned automobiles will be provided only by SEF 80.

The minimum deductible for Legal Liability for Damage to Customer’s Automobiles Collision hasbeen increased to $500.




Throughout the new section, the terms POLand END are used when referring to policy and endorsement forms.This section will be released across the country and the use of these generic terms eliminates the need to refer tothe specific acronyms for policy and endorsement forms used in individual jurisdictions. POLcorresponds toSPF (OPF Ontario) and END corresponds to SEF (OPCF, Ontario).

SEF 79 must now be applied if there are more than two fire or theft losses in the past three years.

Changes that occur on the garage risk throughout the term must now be reported when they occur, as opposed tobeing reported at the end of the policy term for premium adjustment using PCS2.

The Minimum Premium and Minimum Retained Premium has been increased to $250.

Changes have been made to the application of accident and conviction surcharges to simplify the process.

Premium determination procedures for Driveaway, Valet Parking, Bailiff, Raffles and Auction risks are now included.

A change has been made to the Garage Rating/Underwriting Supplement to expand question 3 to require the RIN(Registrant Identification Number).

The new form is attached to be photocopied as required for use.

Since the inception of the program in Ontario and Alberta in 1999, there have been changes which are now reflectedin the revised Garage Section dated January 2001.

1. Under Legal Liability for Specified Perils for Customers Cars the present rate for autos stored in a building is 70¢ plus 20% of the fire rate.The original manual changed the rate to 70¢ plus the full fire rate.As this resulted in increases of up to 400% of the Specified Perils premium, it has been withdrawnand refiled at the present 20% of the rate.

2. The original manual required the driving record for rating Dealer Plates had to start at “0” despite agarage operating three years or more claim free. This was particularly onerous for renewals and hasbeen withdrawn, with full credit for proof of claim free operation up to driving record three.




FACILITY ASSOCIATION GARAGE RATING/UNDERWRITING SUPPLEMENT

Name of Applicant _________________________________________Binder/Policy Number ____________________

If space is insufficent for a proper response, please attach a separate sheet showing details.

1.OPERATIONS: check those applicable:

a) Indicate the operations of the Applicant Sale of: New Vehicles Franchise for Used Vehicles Wholesale/Auction. Repairs Service Station Storage Garage Parking Lot Towing: Cars Other:

b) Kinds of vehicles sold or serviced Cars & Light Trucks Heavy Trucks MotorcyclesSnow Vehicles Recreational Vehicles Antique/Speciality/Exotic

Other: specify _____________________________________________________________c) Does the Applicant provide Courtesy Cars (vehicles exclusively supplied to customers whose own vehicle is being serviced,

repaired or awaiting delivery of a new vehicle) Yes No If yes,number of vehicles:______________________

d) Other operations (specify) _____________________________________________

______________________________________________________________________________________________________

e) Does the Applicant engage in the pickup and delivery of automobiles belonging to customers? Yes No(The Applicant delivers vehicles carrying the owner's vehicle plates.)Does the Applicant engage in the pickup and delivery of other automobiles? Yes No(Driveaway: The Applicant picks up or delivers vehicles carrying his/her dealer plates.)Does Applicant obtain vehicles from or deliver vehicles to distant points using drivers not regularly employed? Yes NoDoes Applicant have locations other than those shown on application? Yes No Details of any Yes answer

______________________________________________________________________________________________________

Radius of operations:_______________ Any operations in the U.S.A ? Yes No If yes,give details and percent of use

______________________________________________________________________________________________________

2. DRIVER INFORMATION: Attach employee's authorization to enable insurer to obtain a Drivera) All proprietors,partners,officers and employees: Record Abstract where such authorization is required by law.

Are Driver Record Abstracts obtained on all new employees? Yes Nob) Other Drivers,not employees,who will drive vehicles,owned or not owned insured by this policy. SEF76,OEF76 or NBEF76 is required.

c) List details of all accidents,convictions and licence suspensions/cancellations of any driver listed above during the last 6 years)

d) Has the Applicant or any driver listed above, to the knowledge of the Applicant,been found by a court to have committeda fraud in connection with automobile insurance? Yes No If yes,give details _______________________________

Page 1 of 2 (see over)

Driver Accidents Driver Convictions, Suspensions/CancellationsNumber Date Number Date Details

Name as shown on Birth Years Employed Full ordrivers licence Drivers licence number dd mm yy Sex licenced mm yy Part time Position

1

2

3

4

5

Name as shown on Birth Yearsdrivers licence Drivers licence number dd mm yy Sex licenced Relationship Residence address

6

7

8

9

10




3. VEHICLES OWNED BY THE INSURED:For risks rated as Automobile Dealer OEF 71 is not attached to the policyNote: Vehicles i) rented or leased to others other than Courtesy Cars (defined above)

ii) used in Towing Services not incidental to garage operationsiii) leased by the Applicant from others

are not covered by Facility Association on this policy form.These may be insured on an Owner's Policy Form.

a) LIST All vehicles owned by or registered to the Applicant which are Not Held For Sale. Establish rate group in accordance withappropriate manual section for Collision; then for value use corresponding amount opposite rate group.

Vehicle Identification Number (VIN) Driver Percent Year Make and model , Body type Value (Serial Number) Use Number Of Use12345678

b) List All Dealer Plate Numbers in possession of Applicant: State MOTRegistrant Identification Number (RIN)________________Plate Numbers: _______________________________________________________________________________________________

List All Other Plate Numbers held by the Applicant: Attach copy of all plate registrations.Plate Numbers: _______________________________________________________________________________________________

c) Vehicles Held For Sale Within Building Open Lot - Location A Open Lot - Location B Average Age ofAverage Number Vehicles Held for SaleMaximum NumberAverage ValueMaximum Single Value

For Section C Rating, the required Limit must include value of vehicles listed in 3a. Value from 3a ______Amount to insure ______

4. CUSTOMERS VEHICLES:Within Building Open Lot - Location A Open Lot - Location B

Average NumberMaximum NumberAverage ValueMaximum Single Value

5. STORAGE PARTICULARS

Building: Construction (Masonry ?)________ Heating _________ Number of Vehicle Exits ______Details of any welding or spray painting___________________________________________________________________________Protection:Give details of any protection (fencing, chains, lighting, watchmen)___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Where are keys for vehicles kept? during business hours ______________________ after hours______________________________

6. ADDITIONAL INFORMATION

a) Insurance Previous Garage Other Automobile Other Liability

Insurer

Policy Number

Expiry Date

b) How long has Applicant been in this business ? _________ e) Any other business carried on at this location, or sale of

c) How long at present location? _______ goods except vehicles, their equipment and accessories?

d) Does Applicant hold a municipal business licence to conduct this business ? Yes No If Yes, Details ________________

Yes No If Yes, Registration Number Required ______________________________

Date: ________________ Signature of Applicant __________________________________

7. BROKER'S/AGENT'S REPORT: a) How long have you known Applicant? _________

b) How long business through your office? ______________

Date: ________________ Signature of Broker/Agent ___________________________________________

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RULE 601: DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . .2AUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2BAILIFF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2COURTESYCARS . . . . . . . . . . . . . . . . . . . . . . . . .2CUSTOMERS AUTOMOBILES . . . . . . . . . . . . . . .2DEALER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2DELIVERY SERVICES . . . . . . . . . . . . . . . . . . . . . .2DRIVEAWAY SERVICE . . . . . . . . . . . . . . . . . . . . .2OWNED AUTOMOBILES . . . . . . . . . . . . . . . . . . . .2PARKING LOT . . . . . . . . . . . . . . . . . . . . . . . . . . . .3REPAIR GARAGE . . . . . . . . . . . . . . . . . . . . . . . . . .3SERVICE STATION . . . . . . . . . . . . . . . . . . . . . . . . .3STAFF UNITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3STORAGE GARAGE . . . . . . . . . . . . . . . . . . . . . . .3TOW TRUCK . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3VALET PARKING . . . . . . . . . . . . . . . . . . . . . . . . . .3VEHICLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

RULE 602: APPLICATION . . . . . . . . . . . . . . . . . . . . . . . . . .4COMPLETING THE APPLICATION . . . . . . . . . . .4ITEM 1 OF THE APPLICATION . . . . . . . . . . . . . . .4ITEM 3 OF THE APPLICATION . . . . . . . . . . . . . . .4COVERAGES AVAILABLE . . . . . . . . . . . . . . . . . .4COMPREHENSIVE - SPECIFIED PERILS . . . . . . .4GARAGE ENDORSEMENTS . . . . . . . . . . . . . . . . .5

RULE 603: UNDERWRITING CONSIDERATIONS . . . . . . . . . . . .6COVERAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6END 76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6TERRITORY AND U.S. EXPOSURE . . . . . . . . . . .6MINIMUM DEDUCTIBLES . . . . . . . . . . . . . . . . . .6POLICY TERM . . . . . . . . . . . . . . . . . . . . . . . . . . . .7EXCLUDED USES . . . . . . . . . . . . . . . . . . . . . . . . .7EXCLUDED VEHICLES . . . . . . . . . . . . . . . . . . . . .7PREMIUM COMPUTATION STATEMENTPCS1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7MIDTERM CHANGES . . . . . . . . . . . . . . . . . . . . . .7FIRE RATE FOR BUILDING STORAGE . . . . . . . .7SUPPLEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . .7DRIVER RECORD ABSTRACTS . . . . . . . . . . . . . .7PREVIOUS INSURANCE HISTORY . . . . . . . . . . .7INSPECTION REPORTS . . . . . . . . . . . . . . . . . . . . .8VEHICLE PLATE SEARCH REPORT . . . . . . . . . . .8MINIMUM POLICY PREMIUM (ADVANCE PREMIUM) . . . . . . . . . . . . . . . . . . . . .8MINIMUM RETAINED PREMIUM . . . . . . . . . . . .8RATING EXAMPLES . . . . . . . . . . . . . . . . . . . . . . .8

RULE 604: RATING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8BASIC GARAGE PREMIUM BYCOVERAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8A. LIABILITY AND DCPD . . . . . . . . . . . . . . . . . .8B. ACCIDENT BENEFITS AND UA . . . . . . . . . . .8C. OWNED AUTOMOBILES - COLLISION . . . . .9D. OWNED AUTOMOBILES - COMPREHENSIVE

SPECIFIED PERILS/ SPECIFIED PERILSEXCLUDING THEFT . . . . . . . . . . . . . . . . . . . .9

E. LEGAL LIABILITY FOR CUSTOMER’SAUTOMOBILES - COLLISION . . . . . . . . . . . . . . .9

F. LEGAL LIABILITY FOR CUSTOMER’SAUTOMOBILES - SPECIFIED PERILSEXCLUDING OPEN LOTPILFERAGE . . . . .9ADDITIONAL CHARGES TO BASIC

GARAGE PREMIUM . . . . . . . . . . . . . . . . . . . . . . .9AUTOMOBILE DEALERS . . . . . . . . . . . . . . . . . .10

RULE 605: REPAIR GARAGE, SERVICE STATIONPARKING LOT, STORAGEGARAGE . . . . . . . . .12

RULE 606: PARTS AND SERVICE TRUCKS . . . . . . . . . . . .12

RULE 607: SNOWPLOW OPERATIONS . . . . . . . . . . . . . . . . .12

RULE 608: COURTESY CARS . . . . . . . . . . . . . . . . . . . . . .13

RULE 609: TOW TRUCKS . . . . . . . . . . . . . . . . . . . . . . . . .13

RULE 610: DRIVEWAYS . . . . . . . . . . . . . . . . . . . . . . . . . .14

RULE 611: BAILIFF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

RULE 612: AUCTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . .15

RULE 613: RAFFLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

RULE 614: CONSIGNMENT . . . . . . . . . . . . . . . . . . . . . . .15

RULE 615: VALET PARKING . . . . . . . . . . . . . . . . . . . . . . .15

TABLE OF CONTENTS

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Rule 601.1: Auction- Stat. Class 86

A risk engaged in the business of auctioning or selling customersvehicles (non-owned vehicles). END 71 must be attached to thepolicy. Owned vehicles used in the course of the insuredís businessmust be insured on POL1 at full manual rates.A risk that is engaged in the business of auctioning owned vehiclesmust be insured as an automobile dealer. Where the insured isengaged in the business of auctioning both owned and customersvehicles (non-owned vehicles), the risk must be rated an automobiledealer.

Rule 601.2: Bailiff - Stat. Class 89

A risk engaged in the business of repossessing vehicles whether ornot using a dealer plate.

Rule 601.3: Courtesy CarsVehicles supplied to customers for their use for a period not toexceed 30 days, while their own vehicles are being repaired or whilethey are awaiting delivery of a newly purchased or leased vehicle,regardless of whether or not the customer is charged a fee for use ofthe vehicle.Supplying vehicles to customers for a charge in other than thecircumstances outlined above is considered renting or leasing ofvehicles and is expressly excluded under POL4.

Rule 601.4: Customers AutomobilesVehicles owned by customers in the insuredís care, custody orcontrol. Vehicles on consignment are considered to be customerísautomobiles.

Rule 601.5: Dealer - Stat. Class 86A risk engaged in selling new or used vehicles. Incidental repair orservicing of vehicles is included.Policies are not issued for collections of antique or classic vehicleswhether or not publicly displayed.

Rule 601.6: Delivery Services - Stat. Class 91A risk where the insured picks up and delivers vehicles using theownerís vehicle plates.

This is not a garage risk and must be insured on non-ownedautomobile policy - POL6 or POL 2. See Non-Owned Section.

For example:

A) The insuredís customer moves to a new address. The insuredpicks up the customer’s vehicle from the old location anddelivers it to the new location. This may be done by driving thevehicle to the new location, trailering or towing the vehicles tothe new location.This may also be done by driving or towing the vehicle to alocation from where it will be shipped by train or transporttruck. Upon reaching its destination, the insured will thendeliver the vehicle to the customer.

B) The insured’s customer drives to Florida and flies home. Theinsured picks up the customer’s vehicle in Florida and drives itback.

C) The insured picks up vehicles on behalf of an automobile dealerusing that dealer’s dealer plate . The insured is performing adelivery service for the automobile dealer.

Any vehicle, which is not a tow truck (as defined under Tow Truck),must be rated in the Commercial section of the manual.

Rule 601.7: Driveaway Service - Stat. Class 89 The insured delivers customers’vehicles using the insured’s dealerplate. END 71 (Excluding Owned Automobiles) must be attached to thepolicy. Owned vehicles must be insured on POL1 at full manual rates.For example: A) The insured delivers tractors from Ontario to Nova Scotia anduses his/her own dealer plate to do this. B) The insured picks up motorhomes in the U.S. and takes them toa dealer in Alberta who will sell them. The insured uses his/her owndealer plate to do this. However, if the owner of the motorhome lefthis or her owner’s plate on the motorhome during this process andthe vehicle is driven using the owner’s plate, then this would beconsidered a delivery service.

Rule 601.8: Owned AutomobilesVehicles owned by the insured (the garage) and used for pleasureand/or in connection with the business stated in the applicationand/or held for sale or demonstration and/or sold but not delivered.Vehicles leased by or from a garage must be insured using POL1written in the name of the lessor with END 5 attached.

Rule 600 - Garage Automobile Policy, POL 4 ,may only be issued for the Garage Risksdefined below. It is understood that pickup and delivery of customer’s vehicles incidental

to the insured’s business of selling, repairing, servicing or parking vehicles is included

Rule 601 - Definitions:

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Rule 601.9: Parking Lot - Stat. Class 84A risk engaged in the business of operating an open air parking lotwhich may include parking and moving of customers vehicles byemployees, washing and cleaning of customers vehicles. END 71(Excluding Owned Automobiles) must be attached to the policy.Owned vehicles must be insured on POL1 at full manual rates.

Rule 601.10: Repair Garage - Stat. Class 81A risk engaged in repairing and servicing but not selling vehicles.Any garage performing engine, body or transmission repair alongwith incidental minor repair is classified as a repair garage. Asalvage/junk yard without vehicle sales is classified as a repairgarage. Possession of a dealer plate that is incidental to the operationof a repair garage is permissible.

Rule 601.11: Service Station - Stat. Class 82A risk engaged in operating a refueling station and/or service stationproviding any of the services of:n Selling, servicing and installation of incidental vehicle parts and

accessories

n Lubricationn Washing and detailing (including automatic wash)n Minor repairs excluding body, engine or transmissionn Auto electric repairsn Muffler installation and repairsn Glass installation and repairsn Soundequipment installation and service (including mobile

phone systems)n Tire installation and repairs

END 71 (Excluding Owned Automobiles) must be attached to thepolicy. Owned vehicles must be insured on POL1 at full manualrates.

Rule 601.12: Staff UnitsStaff is comprised of all proprietors, active partners, employees andother persons (persons on contract) engaged in the business declaredin item 3 of the application regardless of their driver licence status.Drivers who are unlicenced or have a suspended licence are to beincluded in the staff count as well as those listed on END 78.or 78A.

When counting staff units:a) each proprietor, active partner, full time employee and full time

other person = 1 staff unit

b) each part time employee, clerical staff and part time otherperson = 1/2 staff unit

c) total a) and b) and if necessary, round up to the next whole number

For example: 1 proprietor, 1 full time employee, 3 part timeemployees = 3 1/2 staff units which when rounded up to the nextwhole number will be 4 staff units.

END 76 must be used on automobile dealer policies to providecoverage for persons other than active partners, proprietors and fulltime employees, who have been provided with a vehicle for theirregular use.

Inactive/Silent PartnersExample: An incorporated company requires three directors.Applicant and Partner are incorporating a garage business. Thelawyer who signs the incorporation papers becomes the thirddirector. The lawyer is an inactive or silent partner.

Rule 601.13: Storage Garage - Stat. Class 85A risk engaged in the business of operating a storage/parking garagewhich may include parking and moving of customers vehicles byemployees and/or washing and cleaning of customers vehicles.END 71 (Excluding Owned Automobiles) must be attached to thepolicy. Owned vehicles must be insured on POL1 at full manualrates.

Rule 601.14: Tow TruckA vehicle designed for towing a vehicle or a tilt deck truck (a flatbedwith a winch) designed to carry a single vehicle rather than towingit, is considered a tow truck.If a tilt deck truck is towing another vehicle by means of a towbar orsimilar equipment, the ëCargo Other’ trailer charge (found in theCommercial section of this manual) applies.

Rule 601.15: Valet Parking - Stat. Class 85A risk engaged in the business of taking away, parking and returningof customer’s vehicles at (for example) social or special events. Thisdoes not include risks that are operating as Storage Garage orParking Lot. END 71 (Excluding Owned Automobiles) must beattached to the policy. Owned vehicles must be insured on POL1 atfull manual rates.

Rule 601.16: VehiclesIncludes private passenger, commercial, public and recreational typevehicles and farm implements.

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Rule 602 - APPLICATION

Rule 602.1: Completing the ApplicationWhen underwriting a garage policy, the following is required:a) The fully completed and signed Facility Association Garage

Application Form attached to a numbered Facility Associationbinder/application form. The insured’s name must be shown onthe numbered binder/application form. The date and bindingtime must be shown on the numbered binder/application form.

b) The date and binding time must be shown on the GarageApplication Form.

c) A fully completed and signed Facility Association GarageSupplement must be attached to the Garage Application Formand numbered binder/application form.

d) The employee’s authorization to enable the Servicing Carrier toobtain a driver record abstract where such authorization isrequired by law.

Rule 602.2: Item 1 of the Application If the insured operates a location with both building and open lotexposure, each must be shown on a separate line of the applicationas a separate location. Each location/exposure is thereforeindividually rated.

Rule 602.3: Item 3 of the ApplicationSpecify the principal business and should the risk have otherbusiness in respect of which automobile insurance is to be provided,then it must be listed. For example- ‘Automobile Dealer’ or ‘RepairGarage’ with other business of ‘Farm Implement Dealer’ or‘Recreational Vehicles Sales and Repair’. If other business exists itmust be rated according to FA rules in the appropriate section of thismanual.

Rule 602.4: Coverage Available

Liability limit $1,000,000 unless a higher limit is required by federal, provincial law or municipal by-law.Accident Benefits As prescribed by statute (Optional Benefits areavailable)Uninsured Automobile UADir ect Compensation Property Damage DCPDPhysical Damage- owned vehicles (Collision, Comprehensive andSpecified Perils , subject to minimum deductibles.Coverage may only be provided where END 71 has not beenattached.Legal Liability for Damage to Customers Automobiles- Collisionand Specified Perils , subject to minimum deductibles.

Rule 602.4.5: Collision Owned Automobiles Coverage is available for Automobile Dealers only.For all other garage risks END 71 must be attached to the policy andcoverage for owned vehicles must be provided by a separate POL1.Section C coverage on POL4 may be restricted to operation by anamed person (END70) or specific vehicles (END 80). If vehiclesheld for sale are not to be insured for Section C, then END 80 maybe used to provide Collision and Comprehensive or Specified Perilscoverage (if required) on specific owned vehicles which are not heldfor sale.

Rule 602.4.6: DeductibleIf all owned vehicles including those held for sale are to be insuredfor Collision, the deductible will be a minimum of $1,000. WhereEND 70 or 80 are being used, the deductibles are determined on aper vehicle basis in accordance with the section of the manual underwhich the vehicle is rated. Therefore, when using END 70 and 80,the minimum $1,000 deductible under the Garage section does notapply.

END FA82 may not be used for Collision coverage on ownedvehicles including those held for sale.

Rule 602.4.7: Comprehensive / Specified Perils

Perils Excluding Theft POL4 provides coverage for

a) automobiles at locations specified in Item 1 of the application;This coverage is to be written on an 80% co-insurance basis.Policies are not written on a monthly average basis.

The required limit must be in line with the values shown in item4 of the Garage Supplement - Vehicles Held for Sale. Due to theco-insurance provision, it is important for the broker/agent andinsured to discuss this limit carefully.

A method that could be used to calculate the required limit mightbe the maximum number of vehicles times the average value.

The deductible per occurrence will be determined as followsbased on the ‘Maximum Number’ of ‘Vehicles Held for Sale’initem 4 of the garage supplement.

Number of Vehicles Deductible

1 - 5 VEHICLES 1,000

6 - 10 VEHICLES 2,500

OVER 10 VEHICLES 5,000

Rating - refer to Rule 604.1 D

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Rule 602: Application (continued)

Rule 602.4.8: Comprehensive and Specified Perils (continued)

b) automobiles at newly acquired locationsNew locations must be notified to the Servicing Carrier.i) not more than four automobiles at any location not used by

the insured in the business of the insured. These automobilesnot exclusively held for sale and would be disclosed in item3 of the Garage Supplement.

Rating – see Rule 604.1

ii) automobiles specified in END 80

Rating – see Rule 604.3.10

Rule 602.4.9: END 79END 79 must be applied where there have been 3 or more fire ortheft losses within the past three years. END 79 must also be appliedwhere END 40 would be applied if an individually rated vehiclewere insured by a POL1.

Rule 602.4.10: Open Lot Pilferage - Owned

Automobiles. (END 74), This coverage is not available

Rule 602.4.11: Legal Liability for Damage to Customer’s Automobiles

CollisionThe required limit is the value of the most expensive vehicle forwhich the insured will be responsible. The deductible for anyone occurrence is 5% of the required limit rounded to the nearest$250 subject to a minimum $500 deductible. If the required limitis $50,000 or more, END FA82 is available.

Specified Perils The application must specify the maximum number ofcustomer’s automobiles at each location and a limit of liability.The minimum required limit for each location must be the totalvalue of all customer’s vehicles at that location.Each location is subject to a 100% co-insurance clause basedupon the number of vehicles at each location at the time of lossto the maximum number of customers vehicles stated in theapplication for that location.

For example:

The applicant has 5 vehicles; 4 are valued at $10,000 and 1 is valuedat $16,000. The maximum exposure could be calculated bymultiplying the maximum number of vehicles by the value of themost expensive vehicle. The required limit would therefore be$80,000. This limit must be carefully discussed with the applicant,

Rule 602.4.12 Open Lot Pilferage - Customer’s Automobiles (END75) is not available.

Rule 602.5: Garage Endorsements

END 70Named Chauffeur Endorsement - see Automobile Dealer

END 71Excluding Owned Automobiles Endorsement - This endorsement isrequired on all garage risks other than automobile dealers

END 72Multiple Alteration - use as required

END 73Excluding Financed Automobiles Endorsement - use as required onautomobile dealer risks

END 74This endorsement is not available


END 76Additional Insured Endorsement - See Underwriting Considerations,Automobile Dealer


END 78Reduction of Coverage as Respects Operation by Named Persons -this endorsement is handled in the same manner as END 28 a seeGeneral Rules & Procedures section

END 78AExcluded Driver Endorsement - this endorsement is handled in thesame manner as 28A- see General Rules & Procedures Section

END 79Fire and Theft Deductible Endorsement - This endorsement must beapplied where there have been three or more fire or theft losseswithin the past three years. See Application - Section C - OwnedAutomobiles

END 80Specified Owned Automobile Physical Damage Coverage -available only on automobile dealer risks - see Automobile Dealerfor rating information

END 81RGarage Family Protection Endorsement

END 82 Limited Liability for Damage to Non-Owned Automobiles andDrive Other Automobiles - Named Persons Endorsement

END FA82Deductible Amount Endorsement - available for Legal Liability forCollision for Customer’s Vehicles when the value of customer’svehicles exceeds $50,000

END 83Automobile Transportation Endorsment may cover a maximum of 3vehicles either being towed or carried by the towing vehicle.Premium is the equivalent to the current rate for towed vehicles,calculated separately for each vehicle being towed or carried

END 84Owned Automobiles Agreed Limit For Automobile ElectronicAccesories and Equipment charge $30 per $1,000 or part of the limitof coverage shown on the endorsement

END 85Final Premium Computation Endorsment replaces the P.C.S.2

END 86Customers Automobile-Fire and Theft Deductible EndorsmentThis endorsement must be applied where there have been 3 or morefire of theft losses within the past 3 years

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Rule 603: Underwriting Considerations

Rule 603.1: CoverageGarage risks unless otherwise stated are written on POL4 whichprovides Liability, Accident Benefits UAand DCPD while owned,customer’s and non-owned vehicles are being operated.

Owned vehicles may also be covered for Collision, Comprehensive,Specified Perils and Specified Perils without Theft. Coverage forowned vehicles is only provided to automobile dealers.

For all other garage risks END 71 (Excluding Owned Automobiles)must be attached to the policy and owned vehicles must be insuredby means of POL1. Legal Liability coverage for Collision andSpecified Perils coverage to customer’s vehicles may also beprovided.

If the insured operates a location with both building and open lotexposure,each must be shown on a separate line of the application as aseparate location. Each location/exposure is therefore individually rated.

Open Lot Pilferage - Owned Automobiles (END 74), Open LotPilferage - Customer’s Automobiles (END 75) and Customer’sAutomobiles Comprehensive including Open Lot Pilferage (END77) are not available).

Rule 603.2: END 76This endorsement is available on automobile dealer policies, toextend coverage to the persons named on the endorsement who havebeen provided with vehicles.

Because only full time employees and active partners andproprietors have coverage under the policy for pleasure and businessuse other than that stated in item 3 of the application, END 76 mustbe used to provide coverage for other persons e.g. part timeemployees or family members of the insured.

See Rule 604.3 forpremium determination

Rule 603.3: TerritoryPolicies may only be issued for those locations in a jurisdiction inwhich FA operates.

If vehicles are operated regularly to or through more than one ratingterritory, the highest rated of those territories is to be used.

If there are more than 12 trips per year outside the jurisdiction inwhich the insured has the principal place of business (location A),then a) if such trips are to Quebec, use Toronto rates for the full policy term

b) if such trips are to Manitoba, Saskatchewan or British Columbia use Edmonton rates for the full policy term

Example 1:The policy would not insure the BC or US locationof a Calgary, Alberta automobile dealer, but would insure theCalgary location. If a Calgary automobile dealer has a satellitepremises in Vancouver BC, the policy would not cover thesatellite premises in Vancouver. However, if this same dealerhad no dealership location in Vancouver but was shippingvehicles via rail or water to Vancouver, Comprehensive orSpecified Perils coverage under the policy would cover damageto the vehicles being so shipped. If a repair garage hasoperations in Madawaska, Maine and Edmundston, NewBrunswick, the policy would insure the New Brunswick locationbut would not insure the Maine location.Example 2:If an Ottawa, Ontario automobile dealer makes morethan 12 trips to Hull, Quebec in a year to pick up or delivervehicles, Toronto rates must be used to calculate the wholepolicy premium.

Rule 603.4: Minimum Deductibles

Rule 603.4.1: Owned Automobiles (see Rule 603.4.3)Collision: $1,000.Comprehensive/Specified Perils/Specified Perils Excluding Theft: $1,000.

Rule 603.4.2: Legal Liability For Customer’s AutomobilesCollision: 5% of the required limit rounded to the nearest $250,subject to a minimum deductible of $500.

END FA82 is available where the required limit exceeds $50,000.

Specified Perils Excluding Open Lot Pilferage: There is nodeductible applicable.

Rule 603.4.3: Individually Rated VehiclesThese vehicles are subject to the minimum deductible requirementsoutlined in the section of manual in which they are being rated. END79 must also be applied where END 40 would be applied if anindividually rated vehicle was insured by a POL1.

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Rule 603: Underwriting Considerations(continued)

Rule 603.5: Policy TermGarage policies may only be issued for a term of one year.

Rule 603.6: Excluded UsesRenting or leasing to others

Carriage of passengers or goods for compensation

Others as described in the POL4 wording.

Rule 603.7: Excluded AutomobilesVehicles owned in connection with, or used for the purpose of anybusiness not described in item 3 of the application.

Vehicles owned by the insured, which are designed for racingpurposes.

Vehicles provided for the regular use of persons other than activepartners and full-time employees. On the automobile dealer policies,coverage for these vehicles can be obtained by adding END 76,which provides insurance for vehicles that are provided for theregular or frequent use of specified persons who are not active or fulltime employees.

Vehicles designed for bulk transportation of petroleum products orother materials while being used for such purposes.

Vehicles designed for the transportation of other vehicles, but towtrucks shall not be deemed to be designed for such purposes.

Rule 603.8: Premium ComputationStatement - PCS1 An advance premium is based upon the estimated exposure. Apremium computation statement (PCS1) is issued at thecommencement of the policy term and outlines the basis fordetermining the advance premium. Advance premiums on thepremium computation statement PCS1 are subject to adjustment.Prior to the expiry date of the policy, the Servicing Carrier will askthe Agent/Broker to have a new Garage Supplement completed so asto update the information on record for the upcoming renewal term.This need not be signed by the insured if there is a signed GarageSupplement on file. Such a request will be made well in advance ofthe expiry date because of the need to issue the renewal policybefore the insurance expires.

The renewal will not be issued unless and until the properlycompleted Supplement has been returned.

Rule 603.9: Midterm ChangesChanges to drivers, vehicles, dealer plates, locations etc. must bereported to the Servicing Carrier at the time of the change and theappropriate endorsements will be issued.

Once chosen, physical damage limits may not be reduced during thepolicy term.

For example:

The insured chooses a limit of $65,000 for Legal Liability onCustomer’s Vehicles. A month later the limit is increased to $85,000and the Servicing Carrier processes the endorsement. The nextmonth, the insured wants to reduce the limit back down to $65,000.The insured must wait until renewal date to have the limits reduced.

Rule 603.10: Fire Rate for Building StorageThe fire rate is the IAO fire rate (80% co-insurance rate where suchexists) applicable to ‘stock’(vehicles) in the specific building inwhich the vehicles are stored. As the IAO fire rate is per $100 ofinsurance, the rate must be multiplied by 10 before adding to the rateon the appropriate rate page. Where an IAO rate is not available theServicing Carrier will use its voluntary market rate.

Rule 603.11: SupplementThe Supplement is designed to obtain information that is notrequested in the Garage Application. If the additional informationprovided by the Supplement does not fully explain the risk to bewritten, the problematic points must be discussed with theAgent/Broker/insured. Some of the information provided by theSupplement can be verified when the Driver Record Abstracts,Previous Insurance History, Inspection Reports and Vehicle PlateSearch Reports (where available) are obtained.

The Supplement must accompany every new Garage Application. Ifthere is no Supplement on an existing policy, one must be obtainedon the next renewal. An updated Supplement must be obtained priorto each renewal. If there is a signed Supplement on file, theSupplement obtained at each renewal need not be signed.

Rule 603.12: Driver Record AbstractsThe Servicing Carrier is required to order Driver Record Abstracts(MVRs) on all listed drivers (listed under question 2 a and b of theSupplement) at the beginning of each policy term.

Rule 603.13: Previous Insurance History These may take the form of an electronic report or a letter from theprevious carrier. This report must be ordered by the ServicingCarrier, on the garage risk itself and on the principal operator ofevery owned vehicle for which a separate premium is being charged.In lieu of an electronic report or letter, a phone call to the priorinsurance company to confirm insurance history is acceptable. TheServicing Carrier’s file must be clearly documented with details ofthe phone call.

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Rule 603: Underwriting Considerations(continued)

Rule 603.14: Inspection ReportsAn underwriting report (Sentinel, Equifax, IAO etc.) whereavailable, must be ordered by the Servicing Carrier on every newgarage risk. If the information in the underwriting report is notconsistent with the information in the supplement or the application,the broker, insured and underwriting report company must bequeried to resolve the inconsistency. In the event that theinconsistency cannot be resolved the matter must be referred to FAHead Office.

Rule 603.15: Vehicle Plate Search ReportIn some jurisdictions it is possible to order a report which providesa list of all vehicle plates belonging to an individual or business.Where it is possible to order this search, it must be ordered by theServicing Carrier on every new garage risk. Where the reportindicates that plates are lost, stolen or returned or the insured canprovide proof of such a situation, no charge will be made for thoseplates. The circumstances must be clearly documented in theServicing Carrier’s file.

Where it is possible to order both an Inspection Report and VehiclePlate Search Report, one or the other may be ordered. It is notnecessary to order both. In those circumstances where both reports arenecessary to properly assess the risk, both reports may be ordered.

Rule 603.16: Minimum Policy Premium (AdvancePremium)The minimum premium for a policy term is $250, subject to theminimum retained premium in the event of cancellation midterm.

Rule 603.17: Minimum Retained Premium

Garage Policy minimum retained premium is $250.

Rule 603.18: Rating ExamplesFor Example:

The policy insures the operator of a garage (automobile dealer), thespouse or same-sex partner who is a part time bookkeeper and twochildren who are not involved in the business (24-year-old son with4 speeding convictions and a 16 year old daughter with a clearrecord). There is one owned vehicle. END 76 is for the spouse orsame-sex partner because they are only a part time employee and forthe son and daughter because they are not involved in the business.There are 1 1/2 staff units so 2 staff unit rates are charged.The owned vehicle is then individually rated at class 03 (more thantwo drivers other than 06) plus the 06 premium including theappropriate conviction surcharge.

The garage policy premium is the staff unit premium plus the ownedvehicle premium. (The staff unit Liability premium is $100. Theowned vehicle Liability premium is $700. On the face sheet of thepolicy the Liability premium will be shown as $800.)

For statistical purposes, the total policy premium is reported as class86. The garage commission/fee rate is applicable to all premiums.END 76 will show the names of the spouse or same-sex partner, sonand daughter. The premium field on END 76 will show ‘included’.The endorsement field on the declaration page will show ‘included’.

Rule 604: Rating

Rule 604.1 - Basic Garage Premium by CoverageThere is a basic garage premium based on staff units which ischarged for every garage risk to cover the exposure of the garageoperation If END 71 is not attached to the policy, an individualpremium is charged for each regularly plated (non-dealer plate)vehicle and each dealer plate.

A - Liability and DCPD (Liability is the total of BI and PD)a) Determine territory, class (Automobile Dealer, Service Station,

Repair Garage etc.), number of staff units and limit of Liability.

b) Multiply the number of staff units by the appropriate staff unit rate.

c) Multiply the result by the increased limit factor if limits inexcess of $200,000 are required.

d) Add any applicable accident and conviction surcharge.

e) For Automobile Dealer Policies without END 71, a premium ischarged for each regularly plated (non-dealer plate) vehicle pluseach dealer plate and each operator insured by END 76 who isnot rated principal operator of a vehicle or dealer plate.

B - Accident Benefits and Uninsured Automobile a) Determine territory, class (Automobile Dealer, Service Station,

Repair Garage etc.) number of staff units.

b) Multiply the number of staff units by the appropriate staff unit rate.

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Rule 604: Rating (continued)

B - Accident Benefits and Uninsured Automobile c) Add any applicable accident and conviction surcharge

d) Calculate Optional Benefit Premium if required

e) For Automobile Dealer Policies without END 71, a premium ischarged for each regularly plated (non-dealer plate) vehicle pluseach dealer plate and each operator insured by END 76 who isnot rated principal operator of a vehicle or dealer plate.

C - Owned Automobiles - CollisionAuto Dealers only

a) For owned automobiles held for sale with no plates,the premium is calculated on the rate multiplied bt the numberof staff units as follows :

1) Determine territory, number of staff units and deductible

2) Multiply the number of staff units by the appropriate staff unit rate

3) Multiply the result by the deductible factor

4) Add any applicable accident and conviction surcharge

b) For garage vehicles with plates calculate a premium based on theuse of the vehicle from the applicable section of the manual :

For Automobile Dealer Policies without END 71, a premium ischarged for each regularly plated (non-dealer plate) vehicle pluseach dealer plate and each operator insured by END 76 who isnot rated principal operator of a vehicle or dealer plate.

c) Add together the two premiums calculated from a) and b) andshow the total under policy part C 3.1.1 Collision Or Upset(Owned Automobiles)

D - Owned Automobiles - Comprehensive/Specified Perils/Specified Perils Excluding Theft

Auto Dealers only

a) For unplated automobiles

1) multiply the total limit per location by the rate per $1000 depending on the place of storage and for the coverage(Comp, Spec Perils or Spec Perils ex Theft)

2) Multiply the result by the deductible factor

b) For garage vehicles with plates calculate a premium for theapplicable coverage, comp or spec perils, based on the use of thevehicle from the applicable section of the manual :

c) Add together the two premiums calculated from a) and b) andshow the total under policy part C 3.1.2 Comprehensive, orC3.1.3 Specified Perils or C3.1.4 Specified Perils ExcludingTheft (Owned Automobiles)

E - Legal Liability for Customer’s Automobiles - Collision

a) Determine territory, class (Automobile Dealer, Service Station,Repair Garage etc.), number of staff units, required limit anddeductible

b) Multiply number of staff units by the staff unit ratec) Multiply the result by the Other Limit Per Automobile’factor if

a limit of other than $10,000 per vehicle is requiredd) Multiply the result by the deductible factore) Add any applicable accident and conviction surcharge

F - Legal Liability for Customer’s Automobiles - Specified Perils Excluding Open Lot Pilferage a) Multiply the required limit for each location by the rate per

$1,000 dependent upon the place of storage

Rule 604.2: Additional Charges to the Basic GaragePremiumAdditional charges for accidents and convictions shall be assessed inthe following manner:

Rule 604.2.1: Accident SurchargeAll at fault accidents arising out of the use of vehicles in the businessstated in item 3 of the application and all at fault accidents arisingout of the use of any vehicle by a person listed as a driver are to becounted.

At fault accidents of a listed driver will first be counted against theindividually rated vehicles (includes service/parts trucks, tow trucks,END 70, 76 and 80, dealer plates) to which they have been assignedin accordance with the section of the manual in which they are rated.

If accidents cannot be counted in this manner because the driver hasnot been assigned an individually rated vehicle, then the accidentswill be counted against the Basic Garage Premium.

Accidents for which a charge has been made on another FA policyare not included when determining the surcharge amount for theBasic Garage Premium.

The surcharge for at fault accidents not assigned to individuallyrated vehicles will be applied to the Basic Garage Premium. Asurcharge of 10% will be applied for each at fault accident up to andincluding 5.

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Rule 604.2.1: Accident Surcharge (continued)

For each additional accident, the surcharge is 20%. Accidents willonly be considered if they occurred in the 36 months preceding thecommencement date of the policy term.

Accidents occurring after the original inception date of the policyinvolving customer’s vehicles and non-owned vehicles are to becounted against the Basic Garage Premium on renewal. All other atfault accidents are to be charged against the owned vehicle on whichthe accident occurred.

Where END 78 or 78A(see Suspension of Operator’s Licence –General Rules & Procedures section) have been attached to thepolicy, any accidents that occurred while the person named in theendorsement was driving the insured vehicle, must be taken intoaccount in rating.

Rule 604.2.2: Conviction SurchargeIf the garage risk is an automobile dealer, the conviction record ofthe principal drivers and class 06 drivers will be considered incalculating the premium for individually rated vehicles (includesservice/parts trucks, tow trucks, END 70, 76 and 80, dealer plates).

The conviction surcharge for the Basic Garage Premium will bedetermined by reviewing the conviction records of all persons whoare regular and frequent drivers but are not principal drivers ofindividually rated vehicles. Establish which of the convictionrecords produces the highest charge percentage in accordance withthe conviction surcharge schedule (see Accident and ConvictionSurcharges - General Rules and Procedures section). That record isused to determine the conviction surcharge percentage. Oncedetermined, this surcharge is applied to each coverage under theBasic Garage Liability and Owned Automobiles Collision premiumin order to recognize the adverse driving habits which impact thegarage risk. This surcharge should apply to one staff unit only.

For example:

A valet parking risk that employs a driver with many convictionsincreases the risk’s exposure while that person is driving customer’svehicles. While that person may be surcharged for those convictionsunder his/her own policy, there is an additional risk on the garagepolicy through FA when that person is driving customer’s vehicles.If that person’s owners policy is not insured through FA, the garagewill be surcharged for the convictions.

Convictions and accidents will only be used once in thedetermination of premium for vehicles/garages insured with FA.

Rule 604.3: Automobile DealersRule 604.3.1 In addition to the premium developed from the staff unit rate (BasicGarage Premium), premiums are also chargeable for each regularlyplated vehicle and dealer plate registered to the insured. If theapplicant owns any antique or classic vehicle or a vehicle that isbeing reconstructed or restored, that vehicle must be insured on aPOL1.

Rule 604.3.2(An owned automobile may have regular plates or dealer plates attached)

a) For each vehicle used by an owner or partner for non garagepurposes

b) For each vehicle provided regularly or frequently to a full timeemployee

c) For each vehicle provided to another person (insured by meansof END 76)

d) For each vehicle used in connection with the business stated initem 3, including Parts & Service Trucks.see Rule 605Snowplowing see Rule 606Courtesy Cars.see Rule 607Tow Trucks see Rule 608

charge a premium for all coverage according to the appropriatesection (Private Passenger, Commercial, Recreational or Public) ofthe manual. All rules pertaining to that section of the manualincluding all additional charges and discounts will apply exceptcommission/service fee. Add this premium to the Basic GaragePremium.

Those drivers that develop the highest premium must be designatedas principal operator of a vehicle before those that would develop alower premium.

This charge does not apply if a dealer plate is attached to the vehicleand a full premium for the vehicle has been charged under dealerplate (see Dealer Plates below).

Where satisfactory evidence is supplied to the Servicing Carrier thatan individual vehicle is insured elsewhere, no charge will be madeunder this policy for that vehicle.

Rule 604.3.3: Rating for Owned Vehicles and DealerPlates

Individually rated Owned Vehicle includes a vehicle owned andseparately insured by the owner, full time employee or person namedunder an END 76. It does not include tow trucks, courtesy cars orparts trucks for which a separate premium must be charged.

Owned Automobiles for rating purposes, does not include vehicleswith no licence plates that are exclusively held for sale.

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Rule 604.3: Automobile DealersRule 604.3.3: Rating for Owned Vehicles and DealerPlates (continued)

Where the number of individually rated Owned Vehicles (regardlessof Insurer) and Dealer Plates is:

a) if there are no owned automobiles:Each operator will be assigned principal operator of a dealerplate, if any, and excess operators who are full time employeesare not charged for.

Excess operators who are not full time employees must benamed under END 76 and a premium charged for each under therules of the section of the manual that relates to their use ofgarage vehicles eg private passenger, or commercial, or public,or recreational, with physical damage at rate group 8.

Operators are assigned to the dealer plates in the order thatdevelops the most premium.

b) less than the numberof owners, full time employees andpersons named on END 76: Assign a driver to be rated principal operator of each OwnedVehicle. Remaining drivers will be rated principal operator ofeach Dealer Plate.

If there are more drivers than Owned Vehicles and Dealer Plates,no charge will be made for excess full time employees. ExcessNon-employees, eg 06 occasional males and occasional femalesand spouse or same-sex partner, are rated under END 76 fortheir pleasure use of Garage Owned Vehicles. However, driversare assigned to Owned Vehicles and Dealer Plates in the orderthat will develop the highest premium.

c) more than the numberof owners, full time employees andpersons named on END 76: Assign a driver to be rated principal operator of each OwnedVehicle. Remaining drivers will be rated as principal operator ofeach Dealer Plate.

If there are more Owned Vehicles than drivers, assign one ormore drivers as principal operator of each remaining vehicle, soeach vehicle is rated with a principal operator.

Dealer Plates: If there are Dealer Plates with no driver to be rated as PrincipalOperator of them, then rate each as excess dealer plates asdescribed under Rule 604.3.8

For example:

There are two staff units, 3 owned cars and 1 dealer plate.Charge a private passenger rate for each of the three cars, a staffunit rate for the garage exposure and 25% of 07, 0, 1, 2 or 3 forthe dealer plate. One of the staff units must be assigned asprincipal operator of two vehicles.

For each dealer plate, charge a premium for all coverage exceptcomprehensive or specified perils according to the PrivatePassenger, Recreational , Commercial or Public section of themanual that the use of the Dealer Plate is rated under. All Rules ofthat section of the manual apply, including all additional charges anddiscounts except commission/service fee. Age 16-20 and the over750cc category is to be used for motorcycles. The heavy category isto be used for all terrain vehicles.

Rule 604.3.7: Driving RecordThe driving record of the principal operator is used as the initialdriving record, at 0, 1, 2 or 3 maximum, subject to proof of prioraccident free insurance acceptable to the Servicing Carrier.

On subsequent renewals, the driving record may increase by one,each year the driver/vehicle remains accident free to a maximum ofdriving record 3.

Use rate group 8 for private passenger, commercial, public and allterrain vehicles. Use rate group 10 for snow vehicles andmotorhomes. Use rate group 12 for motorcycles.

Conviction and accident surcharges apply.

Rule 604.3.8: Excess Dealer PlatesFor each dealer plate in excess of the number of operators, for allcoverage except comprehensive or specified perils, charge 25% ofclass 07 premium driving record 0, 1, 2 or 3, or 25% of the non-pleasure recreational premium for the type of vehicle concerned atdriving record 0, 1, 2 or 3, where applicable.

For example:

The insured is a snowmobile dealer and has 3 dealer plates. Asinstructed above, you have assigned 2 of the dealer plates to full timeemployees and have individually rated them accordingly. Thepremium for the excess plate will be 25% of the non-pleasurerecreational rate for snow vehicles at rate group 10.

As the garage policy excludes the use of the vehicle for carryingpassengers or property for compensation, Dealer Plates used forCommercial or Public vehicles while operated by the Garage forrepair or road testing are rated 08 to 19 for principal operators underage 25 or class 02 if over 25.

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Rule 604.3: Automobile Dealers Rule 604.3.4

Where owned vehicles (other than those held for sale) are insuredelsewhere, the name of the insurer and policy number must berecorded on the Garage Supplement. Servicing Carriers will verifythis information at new business. Servicing Carriers will not verifythis information at renewal. However, the PCS1 will include astatement to the effect that the described vehicle or vehicles areinsured by that company and policy number stated on the PCS1 formand should this information change, the Servicing Carrier must benotified. These vehicles will not be charged for under this policy.E.g.; “1988 Chevrolet Cavalier and 1992 Pontiac Gran Prix insuredwith XYZ Company under Policy #1223. Should this informationchange, this insurer must be notified immediately.”

Rule 604.3.5: Where a full time employee or person named on END 76 has anowned vehicle insured elsewhere and is the principal operator of thatvehicle, that person will not be designated as an operator of either anowned vehicle or dealer plate under this policy.

Rule 604.3.6: ExamplesA) The risk is a car dealer and has 3 owned vehicles with regular

plates and 3 dealer plates. There is one proprietor, 2 full timeemployees, a spouse or same-sex partner, son and daughter notinvolved in the business. The spouse or same-sex partner, sonand daughter are named on END 76. As the number of peopleequals the number of vehicles and plates, each person (includingson and daughter) will be rated as a principal driver based onPrivate Passenger rules.

B) Using the same scenario, the insured has 3 owned vehicles withregular plates and 1 dealer plate. As the number of people nowexceeds the number of vehicles and plates, the proprietor, 2 fulltime employees and spouse or same-sex partner would be ratedas principal drivers based on Private Passenger rules. The sonand daughter would be rated as occasional drivers on one of thevehicles.

C) Using the same scenario the insured has 4 owned vehicles withregular plates and 4 dealer plates. As the number of plates andvehicles exceeds the number of people, each person will be ratedas a principal driver based on Private Passenger rules and acharge for excess dealer plates will be applied as outlined in B –Dealer Plates.

D) Using the same scenario, the insured has 3 owned vehicles withregular plates and 2 dealer plates. Both employees have theirown vehicles insured elsewhere. The proprietor, spouse or same-sex partner, son and daughter will each be rated as a principaldriver based on Private Passenger rules. The excess dealer plateswill be rated as such. The two full time employees will beincluded in the calculation of the Basic Garage Premium as staffunits but will not be rated as principal drivers

Rule 604.3.7: END 70This endorsement is used when Owned Automobiles Collisioncoverage is to be provided when specified persons are personally incontrol of the vehicles. The premium is calculated on the number ofhighest rated vehicles equal to the number of named persons, using120% of the Collision rates applicable to those vehicles and persons.

Rule 604.3.8: END 80If the insured does not wish to cover the vehicles held for sale forSection C coverage, END 80 may be used to provide physicaldamage coverage for specific owned vehicles. Calculate the rate forSection C coverage in accordance with the applicable section of themanual (Private Passenger, Recreational etc.).

Rule 605: Repair Garage Service StationParking Lot, Storage Garage

See the definition Rule 601.11

Owned Automobiles are not covered and END 71 must be attached.

The premium is calculated at the Basic Garage Payroll Rate only.

Rule 606: Parts and Service Trucks

The premium for these vehicles is determined by using theCommercial section of this manual (including any accident andconviction surcharge) The determined premium is then added to theBasic Garage Premium as outlined in the rating example under Rule603.18.

Rule 607: Snowplow Operations

Unless declared in item 3 of the application, snowplowing for othersperformed by the insured is not covered under the garage policy.However, snowplowing to clear the insured’s own lot is consideredincidental to the garage operation and is therefore covered.

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Rule 608: Courtesy Cars

These vehicles are to be rated class 07, driving record 0 + 50% forall coverage. Driving records 1, 2 and 3 are not available forcourtesy cars. If the courtesy vehicle is a recreational vehicle, rate inthe Recreational section and use the special non-pleasure factorsfound in that section plus 50% for all coverage.

For Motorcycles, use the age 16 – 20 and over 750cc.

Rule 609: Tow Trucks

609.1 TOW TRUCKS INCIDENTAL TO AN AUTOMOBILE DEALER OPERATION USE POL 4 ONLYBecause END No. 71 is not applied to risks rated as Auto Dealers,coverage for tow trucks is included on the POL. 4Charge Class 43 + 50% for liability and DCPC and class 43 for allother coverage for each tow truck regardless of the radius ofoperations within the same Province and add the premium to thebasic garage premium. For Legal Liability for Customers’Autos forCollision and Specified Perils calculate the rate as indicated under609.2 below and include under the basic garage premium.

609.2 TOW TRUCKS INCIDENTAL TO RISKS RATEDOTHER THAN AUTOMOBILE DEALERSThese vehicles must be insured on POL1, as owned autos areexcluded.

Legal Liability for Customer’s Automobiles, must be provided bymeans of POL4. It is recommended that both POL1 and POL4 beplaced with the same insurer to protect the insured in the event of aclaim dispute and that the liability limits be the same on both policies.

On POL1 charge class 43 + 50% for Liability and DCPD and class43 for all other coverage regardless of the radius of operations withinthe same Province. The driving record is determined in theCommercial section of the manual.

On POL 4 charge Storage Garage rates for Liability, AccidentBenefits, UAand DCPD. If the insured does not store vehicles, useService Station rates.

Legal Liability For Collision To Customer’s Automobiles will berated as follows based on the vehicles towed:

A) PPV, Light Commercial and Light Motorhomes(4.5Tonnes or 10,000 LBS and under)

• Use class 02 and the same driving record as the tow truck.

• Use the estimated rate group value table in the Private Passenger section of the manual to determine the rate group based on the limit chosen.

• Calculate the class 02 Collision premium.

• Charge 50% of that premium.Vehicles over 4.5 tonnes or 10,000 LBS GVW

• Use the same driving record as the tow truck.

• Use rate group table II in the Commercial section of the manual to determine the rate group based on the limit chosen. The model year is assumed to be the current year.

• Determine the Commercial Collision premium.

• The charge will be 50% of that premium for each tow truck.

Legal Liability for Specified Perils on Customer’s Automobileswill be rated as follows: Multiply the limit chosen by the open lot rate for Specified Perils onCustomer’s Automobiles.

609.3 TOW TRUCKS NOT INCIDENTAL TO A GARAGEOPERATION USE POL1 FOR TOW TRUCK AND POL 4 FORLEGAL LIABILITY FOR CUSTOMERS AUTOMOBILESThese vehicles must be insured on POL1. Legal Liability forCustomer’s Automobiles, must be provided by means of POL4. It isrecommended that both POL1 and POL4 be placed with the sameinsurer to protect the insured in the event of a claim dispute and thatthe Liability limits be the same on both policies, although these arenot requirements.

POL1 – charge class 43 + 50% for Liability and DCPD and class 43for all other coverage, regardless of the radius of operations. Thedriving record is determined in the Commercial section of themanual.

POL 4 – if the Tow Truck is not operated in connection with aAutomobile Dealer, Repair Garage, Service Station, use StorageGarage rates for Liability, Accident Benefits and UninsuredAutomobile and DCPD, or, if the insured does not store vehicles,otherwise use Service Station rates.

Legal Liability For Collision To Customer’s Automobiles is ratedbased on the vehicles towed:


• Use class 02 and the same driving record as the tow truck.

• Use the estimated rate group value table in the Private Passenger section of the manual to determine the rate group based on the limit chosen.

• Calculate the class 02 Collision premium.

• Charge 50% of that premium.

Legal Liability For Collision To Customers Automobiles will berated as follows based on the vehicles towed:

B) Vehicles over 4.5 tonnes or 10,000 LBS GVW

• Use the same driving record as the tow truck.

• Use rate group table II in the Commercial section of the manual to determine the rate group based on the limit chosen. The model year is assumed to be the current year.

Determine the Commercial Collision premium.

The charge will be 50% of that premium for each tow truck.

Legal Liability for Specified Perils on Customer’s Automobiles Multiply the limit chosen by the open lot rate for Specified Perils onCustomer’s Automobiles.

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Rule 610: Driveways

Please see the definition found Rule 601.7. These risks are writtenon POL4 with END 71. Use Service Station rates for Liability,Accident Benefits Uninsured Automobile and DCPD, based on thenumber of staff units and add each of the applicable followingpremiums:

For Each Dealer Plate

The premium for Liability, Accident Benefits, UninsuredAutomobile and DCPD, is to be calculated for each plate by usingclass 07 rates or class 08-19 if the principal operator is under 25. Thedriving record will be the 0, 1, 2 or 3 years accident free that the riskqualifies for.

The driving record is based on FA experience only for all coverage.

If the insured tows a vehicle behind the vehicle being delivered in orderto make a return trip home, charge 10% of the Liability premium. Thetowed vehicle must have separate coverage on a POL1.

If the insured is delivering more than one vehicle by means ofdriving one and towing or piggybacking others, then charge anadditional premium as follows using Liability, Accident Benefits andUA premium:

a). If only 1 vehicle being towed or piggybacked, charge 10%

b). If more than 1 vehicle is being towed or piggybacked, charge25% for each towed or piggybacked vehicle.

Legal Liability For Collision To Customers Automobiles will berated as follows based on the vehicles towed :


• Use the estimated rate group value table in the Private Passengersection of the manual to determine the rate group based on thelimit chosen.

• Calculate the class 07 (or 08-19 if the principal operator is under25) Collision premium.B) Vehicles over 4.5 tonnes or 10,000 LBS GVW

• Use rate group table II in the Commercial section of the manualto determine the rate group based on the limit chosen. Themodel year is assumed to be the current year.


Legal Liability for Specified Perils on Customer’s Automobiles Multiply the limit chosen by the open lot rate for Specified Perils onCustomer’s Automobiles.

Rule 611: Bailiff

This description includes those persons lawfully repossessingvehicles. If the insured owns a compound and is storing vehiclesthere, the limit per occurrence must reflect the total exposure at thatlocation. These risks are written on POL4 with END 71.

Use Service Station rates for Liability, Accident Benefits, UninsuredAutomobile and DCPD based on the number of staff units and addeach of the applicable following premiums:

For each dealer plate or if the insured has no dealer plate:

The premium for Liability, Accident Benefits, UninsuredAutomobile and DCPD is calculated for each plate (each owner andfull time employee if no plates) using class 07 rates or class 08-19 ifthe principal operator is under 25.

The driving record is based on FA experience only for all coverage.

The driving record will be 0, 1, 2 or 3 years accident free that the riskqualifies for.

The rate group and premium for DCPD is calculated as outlinedunder Legal Liability for Customer’s Automobiles except substitutethe words “DCPD” premium for “Collision premium”.If the insured uses a tow truck, see Rule 608.2 Tow Truck Incidentalto a Garage Operation.

Legal Liability for Damage to Customer’s Automobiles

Legal Liability For Collision To Customer’s Automobiles will berated as follows based on the vehicles towed :


• Use the estimated rate group value table in the Private Passengersection of the manual to determine the rate group based on thelimit chosen.

• Determine the class 07 (or 08 – 19 if the principal operator isunder 25) Collision premium

B) Vehicles over 4.5 tonnes or 10,000 LBS GVW

• Use rate group table II in the Commercial section of the manualto determine the rate group based on the limit chosen. Themodel year is assumed to be the current year.


Legal Liability for specified Perils on Customers AutomobilesMultiply the limit chosen by the open lot rate for Specified Perilson Owned Automobiles

G15




Rule 612: Auctions

Please see definition Rule 601.1. These risks are written on POL4with END 71. Use Storage Garage rates for Liability, AccidentBenefits and Uninsured

Automobile based on the number of staff units and add the followingpremium:

For each dealer plate and special permit or plate that theinsured holds to permit the delivery of vehicles:The premium for Liability, Accident Benefits, UninsuredAutomobile and DCPD, is to be calculated for each plate by usingclass 07 rates or class 08-19 if the principal operator is under 25.

The driving record is based on FA experience only for all coverage.The driving record will be the 0, 1, 2 or 3 years accident free that therisk qualifies for.The rate group and premium for DCPD is calculated as outlinedunder Legal Liability for Collision to Customers Automobilesexcept substitute the words “DCPD premium” for “Collisionpremium”.

Legal Liability - Customer’s Automobiles:Collision

Rating is based on the vehicles towed.

a) Private Passenger V,ehicles, Light Commercial andLight Motorhomes (4.5 tonnes and under)Use class 07 (or 08-19 if the principal operator is under 25). Thedriving record is determined using the method shown in samemanner

Using the limit chosen, determine the rate group from theestimated rate group value table in the Private Passenger section ofthe manual.

Calculate the Collision premium.

b) Vehicles over 4.5 tonnes (10,000 lbs.)From the limit chosen, Use rate group Table II in theCommercial section of the manual to determine the rate groupbased on the limit chosen. The model year is assumed to be thecurrent year.


Legal Liability for Specified Perils on Customer’s AutomobilesMultiply the chosen limit by the open lot rate for Specified Perils onOwned Automobiles.

Rule 613: Raffles

The vehicle must be insured on POL1. If the organization that israffling the vehicle does not own the vehicle, that organizationshould be insured under POL6.

On POL1 the vehicle is to be rated 02. The driving record will be 0.The rate group will be determined using the rate group table in theappropriate section of the manual.

Rule 614: Consignment

Vehicles on consignment, not being owned by the insured,are Customer’s Automobiles.

Rule 615: Valet Parking

For each employee (full or part time) charge the Storage Garagestaff unit rate. Coverage for Open Lot Pilferage is not available. END 71 must be attached to the policy and owned vehicles must beinsured on POL1.

Documents

Section G – Garage Section FACILITY ASSOCIATION G.pdf · The original manual changed the rate to 70¢ plus the full fire rate. As this resulted in increases of up to 400% of the