North Star Mutual Ins. Co. 9-2019

UNDERWRITING

TABLE OF CONTENTS

ITEM GA-INFO PAGE

CDO Conditional Renewal Procedures .......................................................................................... 24-26 CDO Cancellation/Non-Renewal Procedure ................................................................................. 24 Initial Notice (Sample Letter) ......................................................................................................... 25 Reminder Notice (Sample Letter) .................................................................................................. 26 Notice of Conditional Renewal (CF-2048)

Decline\Cancel\Non-Renew\Non-Pay Time Requirements ............................................................... 15 Farm Liability Underwriting Guidelines ....................................................................................... 4-8

Additional Insured .......................................................................................................................... 5 Additional Insured - Partnership .................................................................................................... 4 Babysitting ..................................................................................................................................... 7 Business Activities ......................................................................................................................... 8 Commercial Liability Coverage (NS-810) ...................................................................................... 8 Corporation as Named Insured ...................................................................................................... 5 Custom Farming (Liability Only) .................................................................................................... 5 Custom Farming Spray Drift Coverage (Liability Only) ................................................................. 5 Dwelling Liability Coverage (NS-800) ............................................................................................ 8 Farm Personal Liability .................................................................................................................. 4 FPL or PL ....................................................................................................................................... 4 Horses ............................................................................................................................................ 6 Incidental Sales Liability Exposure ................................................................................................ 7 Named Insureds............................................................................................................................. 4 Non-Farming Discount ................................................................................................................... 4 Office, Professional, Private School or Studio Use ....................................................................... 7 Other Business .............................................................................................................................. 8 Personal Liability ............................................................................................................................ 4 Recreational Motor Vehicle Liability (Off Premises Liability) ......................................................... 6 Rental Dwelling .............................................................................................................................. 8 Snowblowing .................................................................................................................................. 8 Watercraft Liability (Liability Coverage Only) ................................................................................. 7 Farm Property Underwriting Guidelines ........................................................................................ 1-3

A-2 Dwellings ................................................................................................................................. 1 Complete Information .................................................................................................................... 1 Cosmetic Damage Exclusion to Metal from Hail ........................................................................... 2 G-1 Outbuilding Class .................................................................................................................... 2 Inland Marine - Appraisals and Descriptions ................................................................................. 3 Installed Equipment Breakdown .................................................................................................... 2 Insurance To Value ........................................................................................................................ 1 Leased Equipment ......................................................................................................................... 3 Livestock Confinement Coverage .................................................................................................. 3 Mobile Homes ................................................................................................................................ 2 Mobile Home Underwriting Guidelines ..................................................................................... 13-14 Modified Replacement Cost ........................................................................................................... 1 Mortgagees/Contract For Deed Holders/Loss Payees .................................................................. 3 Restriction Endorsements .............................................................................................................. 2 Signatures ...................................................................................................................................... 1

North Star Mutual Ins. Co. 9-2019

UNDERWRITING

TABLE OF CONTENTS CONTINUED

ITEM GA-INFO PAGE

Guide To Handling Miscellaneous Farm Liability Situations ...................................................... 9-11

Apple Orchards .............................................................................................................................. 9 Beauty Shops ................................................................................................................................. 9 Bed ‘n Breakfast ............................................................................................................................. 9 Boat Storage, Campers ................................................................................................................. 9 Christmas Trees ............................................................................................................................. 9 Contract Growers ........................................................................................................................... 9 Custom Feeding ............................................................................................................................. 10 Dogs ............................................................................................................................................... 10 Gravel Pits ..................................................................................................................................... 10 Hunting on Insured Premises for a Fee ......................................................................................... 10 Parties/Auctions ............................................................................................................................. 10 Pick Your Own Strawberries/Raspberries ..................................................................................... 11 Road Ditch Mowing ........................................................................................................................ 11 Road Side Stands .......................................................................................................................... 11 Sawmills ......................................................................................................................................... 11 Trampolines and Swimming Pools ................................................................................................ 11 Wind Generating Tower/Free Standing Solar Panels.................................................................... 11 Optional Individual Risk Premium Modification Supplement ...................................................... 12

Eligibility ......................................................................................................................................... 12 Rating Procedure ........................................................................................................................... 12 Rating Territories ............................................................................................................................. 27 Sample Letters.................................................................................................................................. 16-23 Cancel Policy - Need Original Policy or Lost Policy Receipt ......................................................... 22 Dog Bite - Letter to Agent .............................................................................................................. 20 Dog Bite - Letter to Insured ............................................................................................................ 21 Permission to Remove Name From Policy .................................................................................... 16 Received Application - Cancel Current Policy ............................................................................... 18 Return Mail - Forward to Mortgagee .............................................................................................. 23 Trampoline Questionnaire ............................................................................................................. 17 Will Not Reinstate .......................................................................................................................... 19 Underwriting ..................................................................................................................................... 1

North Star Mutual Ins. Co. GA-UND-1 9-2019

UNDERWRITING

One of the General Agent’s duties in the coordination of the package policy is the accepting and rejecting of appli-cations. This includes the rejection of an entire risk or individual items that are not in insurable condition from a wind standpoint. By knowing the producer better and being more familiar with many of the risks, you should be in a better position to handle much of the obvious wind underwriting at the same time as you deal with the fire underwriting.

Companies that issue the policy assume the entire underwriting function. North Star Mutual’s Farm Underwriting Department is always ready and willing to assist with borderline cases and especially with any questions regarding proper liability underwriting.

In this section of the General Agents Manual, general underwriting guidelines will be reviewed along with the proper handling of some specific examples.

FARM PROPERTY UNDERWRITING GUIDELINES

COMPLETE INFORMATION

Complete information must be supplied on both the CPP and CDO applications. If you notice information needed by North Star Mutual is missing, request it from the agent at the same time you ask for any fire underwriting infor-mation. This will help speed processing at North Star Mutual as unnecessary correspondence may be avoided.

SIGNATURES

All applications and endorsement requests should be signed by the insured. This is especially important if values are to be reduced or if a coverage or insured is to be deleted. If it is impossible to get a signature, the file should be documented accordingly.

INSURANCE TO VALUE

Insurance to value in all classes of property is essential. The only way to compensate for underinsurance is with higher rates.

Insurable property must be written at the same value for fire and wind. However, property that is uninsurable for wind may be written for Township Mutual perils only.

MODIFIED REPLACEMENT COST

Modified Replacement Cost Coverage should be used on Deluxe Dwellings when it is not possible to write the coverage at a minimum of 90% of replacement cost. This is especially true on large 2 or 3 story farm houses where the cost of replacement is extremely high. In many of these instances, the wise thing to do is to insure the house for the amount it might cost an insured to build a replacement house that fills the insured’s needs and still fit the 50%, 60%, 70%, or 80% requirement.

A-2 DWELLINGS

The A-2 class is intended for dwellings that do not qualify as Deluxe Dwellings. They are very seldom written with replacement cost. An A-2 dwelling should be written for a minimum of 80% of its actual cash value. Replacement Cost coverage may be written on an A-2 dwelling that is insured for at least 80% of its Replacement Cost and is well maintained. Replacement Cost Coverage must be requested, approved, and the coverage indicated on the declaration page.

North Star Mutual Ins. Co. GA-UND-2 9-2019

MOBILE HOMES

Mobile homes normally are insured in Class A-3. However, an exception may be made in the case of a mobile home that has been put on a basement or has an addition with more value than the mobile home. These homes as well as newer mobile homes that meet the criteria set forth in the Agents Manual may be rated in Class A-2 at the discretion of the Township Mutual. See Mobile Home Underwriting Guidelines (Page 13-14).

G-1 OUTBUILDING CLASS

It is extremely important to limit buildings placed in the G-1 class to those that are of superior construction and upkeep. The underwriting requirements in the Agents Manual for G-1 or G-1S buildings must be met to be eligible for the G-1 class. Buildings that are in the G-1 class and no longer qualify due to age, condition, or change in use should be moved to the G-2 or G-3 class.

COSMETIC DAMAGE EXCLUSION TO METAL FROM HAIL

The Cosmetic Damage Exclusion (caused by hail) to metal exterior surfaces is available for Farm Outbuildings with metal roofs and steel bins. Silos are not eligible. When hail severely damages the metal exterior surfaces of Farm Barns, Buildings, Structures and Outbuildings to the extent the damage allows water to penetrate through the metal surface, coverage will apply towards the repair or replacement according to the type of coverage purchased (Actual Cash Value or Replacement Cost).

Many times the damage caused by hail is not severe enough to prevent the exterior metal surface from performing its intended function of keeping out the elements over an extended period of time and only alters the appearance of the metal, this is considered cosmetic damage. Policyholders have the option of excluding cosmetic damage for a reduced rate. The rate reduction varies by the type and class of building.

When the Cosmetic Damage Exclusion is put on a particular building the wording “Cosmetic Damage Exclusion, CF-2018 applies” should appear directly below the building description on the declarations that the exclusion applies to.

INSTALLED EQUIPMENT BREAKDOWN COVERAGE

Installed Equipment Breakdown covers mechanical and electrical breakdown of installed equipment in an insured farm dwelling or outbuilding. Covered equipment includes equipment designed and built to operate under internal pressure or vacuum, other than weight of contents, communication and computer equipment, and other electrical or mechanical equipment. Self-propelled mobile farm equipment, wagons, trailers and implements are not cov-ered; however, GPS, auto steer systems and crop monitors are covered as Transportable Electrical Equipment. For Coverages A-D, a $500 deductible applies. For Coverages E-G, the policy deductible applies subject to a minimum of $500. Coverage does not apply to Inland Marine items. Premium is calculated by taking 4% of the Modified Wind Premium – premium calculated after all debits and credits are taken (net property premium not including Liability or Inland Marine). Coverage limits are as follows.

Coverage A, C & D ....................................................................... $50,000 Coverage E, F & G ....................................................................... Limit of insured item Computers (in Dwelling or Outbuilding) ....................................... Limit of Coverage C or G Farm Income/Extra Expenses/Loss of Rents............................... Limit stated on Declarations Utility Interruption (12 hour waiting period) .................................. Follows Farm Extra Expense limit Transportable Electrical Equipment ............................................. $25,000

RESTRICTION ENDORSEMENTS

One very valuable tool available in underwriting wind and hail coverage is the restriction endorsement. By using a restriction, a structurally sound building can be insured while, at the same time, excluding coverage for a part of the building that has no useful life or value left or where unrepaired damage exists. The most common use of the restriction endorsement is on shingles. The endorsement must state that no coverage applies to that portion of the building until existing damage is repaired or the worn out components (such as shingles) are replaced. By getting the insured’s approval, either by agreement indicated on the application or a signed restriction endorsement, po-tential conflicts at the time of a loss can be avoided.

North Star Mutual Ins. Co. GA-UND-3 9-2019

INLAND MARINE - APPRAISALS AND DESCRIPTIONS

When writing several different classes of Inland Marine Coverage, appraisals are required for items valued at $3,000 or more. Items insured under Inland Marine should be insured for 100% of their value.

It is very important that all Inland Marine items have good complete descriptions. If an item is lost or destroyed, the only way to know exactly what is to be replaced is by having a detailed accurate description.

MORTGAGEES/CONTRACT FOR DEED HOLDERS/LOSS PAYEES

Mortgagees and Contract for Deed Holders are added to the policy only to protect their interest as sellers of real property. Sellers of personal property may be protected by being added as Loss Payees. An individual that is a co-owner of insured property may have his or her interest protected by the addition of the following statement:

With respect to insurance on (Covered Property), loss, if any, to this property shall be adjusted with the insured and be payable to the insured and (Mortgagee or Loss Payee) as their interests appear.

Mortgagees, Contract for Deed Holders and Loss Payees should not be added as Additional Insureds on the pol-icy except for Short Term lease situations on Farm Equipment. The Additional Insured form provides liability pro-tection, which, if needed by a Mortgagee, Contract for Deed Holder or a Loss Payee, should be secured by that individual.

LEASED EQUIPMENT

When insuring leased equipment, it is very important to distinguish between long term and short term leases.

1. Long Term Leases usually involve equipment that is leased for at least a year and often include an option to buy. Specific machinery under a long term lease may be specifically insured under Coverage E or insured in the blanket - Coverage F. In this case, the same perils apply to the leased equipment as applies to the rest of the farm machinery and equipment

2. Short Term Leased Equipment, less than 1 year term, is equipment usually leased for one season whether it be for tillage, harvesting or any other purpose. The most common short term leases involve tractors and com-bines. It is important to find out from the agent when a short term lease exists as a minimum retained premium charge must be made in order to get sufficient premium for the high exposure in a short period of time. This coverage is provided by placing a statement on the declarations page explaining the coverage and making a one time charge.

3. Farmers who occasionally lease items for short periods of time may cover this exposure by insuring one amount under Class E with the heading “Leased, Rented or Borrowed Farm Machinery”.

LIVESTOCK CONFINEMENT COVERAGE

This coverage applies only to insured livestock while in buildings described on the declarations as having this cov-erage apply. It is important to have the buildings described accurately on the declaration with the proper dimensions.

When applying for coverage, the agent must complete a separate Livestock Confinement application for each build-ing to which coverage is desired. Coverage may not be bound by the agent. Coverage will be placed in effect as soon as North Star Mutual or the Issuing Company approves the application. Most buildings will be inspected at some point following the issuance of the coverage.

North Star Mutual Ins. Co. GA-UND-4 9-2019

FARM LIABILITY UNDERWRITING GUIDELINES

NAMED INSUREDS

Unmarried Couples - Couples who are unmarried and living together may be written on a policy with personal liability if the agent knows them well and they own the property jointly or have lived together for some time.

Married Couples - Married Couples both named on a policy should have “and” between them rather than “or” or “and/or”. (e.g. Doe, John & Mary)

The first line of named insured must be the name of an individual OR corporation when writing a FPL or PL policy. When issuing a premise liability policy, the named insured may be in a trust or estate.

PERSONAL LIABILITY

Personal Liability provides protection for claims made for losses resulting from the personal activities of the insured as well as accidents that are a result of the insured premises. No coverage is afforded to the business activities (including farming) of the insured. To be eligible for personal liability on a farm policy, the insured must live on the premises and have no other personal liability coverage.

FARM PERSONAL LIABILITY

In addition to providing the coverages of personal liability, farm personal liability also provides protection for claims that may arise because of the insured’s farming activities. If the insured has personal liability coverage on another North Star Mutual policy, liability for the farm property or dwelling may be added to that policy.

If the insured has personal liability coverage elsewhere and needs liability coverage for the farm or dwelling on our farm policy, a Commercial General Liability policy covering premises and operations may be written and added to the farm policy.

FPL (NS-710) OR PL (NS-700)

If writing liability coverage where a farming exposure on the part of the insured exists, FPL must be written. PL may be written when the insured’s premises consists of 40 acres or less, the insured is not actively engaged in any type of farming (including making of hay), and there are no horses or other livestock.

NON-FARMING DISCOUNT

A non-farming discount may be applied in situations where FPL coverage is required because of farm land owned by the insured, but no active farming and no making of hay is done and there are 5 or fewer head of horses or other livestock. The discount recognizes the substantially reduced exposure.

ADDITIONAL INSURED – PARTNERSHIP (NS-316A)

May be written when 2 or more individuals are co-owners and/or operators of a farm and maintain separate house-holds. A single policy is then written in the names of 1 or all of the partners.

e.g. Doe, John & Joe Farmer & Jack Smith or Doe, John & Joe Farmer & Jack Smith dba: Triple J Farms

The basic FPL charge applies to 1 named insured and the partnership charge is added for each of the other part-ners. In the above example, there would be 2 partnership charges. All 3 of the partners are listed on the Partnership endorsement or on the declarations page under that heading. An additional residence maintained or additional farm premises with buildings charge must be made for the additional 2 partners, if personal liability is to be provided.

It is preferred that we provide personal liability for all partners, however, if any partners have personal liability else-where, we must exclude it on the Partnership endorsement or on the Declarations page for such partner(s). If personal liability is excluded for any partner(s) there is no premium credit.

North Star Mutual Ins. Co. GA-UND-5 9-2019

CORPORATION AS NAMED INSURED (NS-506A)

Corporation must be family owned and only involved in farming. The corporation should be listed as the named insured.

e.g. Doe Farms, Inc.

The corporation is a legal entity and takes the basic liability charge. Each member of the corporation living in a separate household must be charged a corporate member charge. The name of each member of the corporation living in a separate household is listed on the Corporation as Named Insured endorsement or on the Declarations page under that heading.

The basic liability charge includes one dwelling and set of buildings. This takes care of the residence of one member of the corporation. An additional residence maintained or an additional farm premises with buildings charge must be made for each of the other members if we are providing personal liability for them. If any member of the corpo-ration has personal liability elsewhere, we must exclude it on the Corporation as Named Insured endorsement or on the Declarations page.

ADDITIONAL INSURED

The additional insured endorsement may be added to protect the interest of a person or organization that does not significantly add to the liability exposure of the named insureds.

Listed below are some of the most commonly added additional insured exposures and the premium charged:

1. Landlord, renting farmland to insured, no buildings - Same charge as partnership charge.

2. Co-owner of land, machinery, livestock - No charge.

(only when co-owner has no other liability covering this exposure)

3. Leasing company, leasing machinery or livestock to insured - No charge.

4. Farm manager - No charge.

5. Executors, administrators, trustees, or beneficiaries - No charge.

6. Owner of custom fed livestock - Same charge as partnership charge. 7. Corporation made up of individuals not already named insured.

CUSTOM FARMING (LIABILITY ONLY)

The custom farming exposure is covered under our basic farm liability policy. No premium is charged if gross receipts are $5,000 or less. When gross receipts exceed $5,000, a charge is made to those gross receipts in excess of $5,000. When the insured’s custom farming operation consists of custom spraying, we handle it in the same manner as any other custom farming operation. However, there is no coverage for the actual spraying operation. The premium charged covers the added exposure of the insured being out on the road with farm machinery and operating his equipment in unfamiliar surroundings.

When custom farming is performed with gross receipts in excess of $5,000, we will not write Special Form on farm machinery, equipment, and tools or increase the $1,000 limit on the Physical Damage to Property Extension en-dorsement.

CUSTOM FARMING SPRAY DRIFT COVERAGE (LIABILITY ONLY) (CF-2082)

Property Damage liability is available for sudden and accidental spray drift of agricultural chemicals for up to $100,000 when an insured is applying agricultural chemicals under contract for others. Application by aircraft is excluded. The $100,000 is an aggregate limit. The care, custody, and control exclusion applies. There is no cover-age provided by this endorsement for the insured's product or work. This coverage is intended for those insureds doing Agricultural Custom Spraying on a limited basis, typically $25,000 or less in gross receipts.

North Star Mutual Ins. Co. GA-UND-6 9-2019

HORSES

When an insured has horses on his/her premises, this added exposure must be checked out carefully and docu-mented in the file. We are willing to write risks with this exposure if the horses are used only for the insured’s pleasure. Farm personal liability must be written when the insured has horses. The rates used for this exposure are shown in the rate schedule. The livestock exposure charge must also be made.

Occasionally insureds who have horses for pleasure only will take them to a local horse show or parade. If this is limited to just a few occasions and is local in nature, it may be acceptable with an additional charge applying. If very slight, no extra charge is necessary. Please contact a North Star Mutual farm underwriter to discuss these situations individually.

The raising and selling of horses is also covered as a farming activity.

Our concern is that we do not provide coverage where the exposure is more hazardous than a typical horse expo-sure. If an exposure is more hazardous than we feel we can insure, our only option is to not write the liability at all. When it appears an insured may have an exposure more than the ordinary horse exposure, we should ask the following questions: (1) How many horses do they have? (2) What breed of horses? (3) Who rides them or uses them? (4) Are they taken to parades? If so, how many? (5) Are they taken to shows? (6) Is there boarding, training, or stud service provided? (7) Is any racing done with the horses?

When horse boarding is provided by an insured, please contact a North Star Mutual farm underwriter to discuss acceptability, receive prior approval, and determine additional charges.

Horse exposures are not acceptable where the insured gives riding lessons or rents out, boards, trains, or races horses. If the insured does any of the above or uses his/her horses for any purpose other than normal pleasure use, we will not write farm liability coverage unless coverage for the entire horse liability exposure is insured with a specialty company. In that case we can write the FPL and exclude anything involving the ownership or use of horses.

RECREATIONAL MOTOR VEHICLE LIABILITY (OFF PREMISES LIABILITY)

The basic personal liability or farm personal liability policy provides coverage for the insureds recreational vehicles while on the insured’s premises. For off premises coverage to apply, the Recreational Motor Vehicle Liability En-dorsement must be added.

Golf carts are covered by the basic policy while being used for golfing purposes away from the premises.

When Recreational Vehicle Liability (NS-704) or Golf Cart Liability (NS-432) are on the policy and the Insured uses his/her golf cart at fairs or events such as Rollog or Farm Fest an additional premium will be charged. Please contact a North Star Mutual farm underwriter to discuss these situations.

The underwriting rules for recreational vehicles are found in the Farm/Personal Liability section of the agent ’s man-ual. Before adding this coverage, MVR’s should be checked out under the following circumstances:

1. High powered or high performance vehicles. 2. Young owners or operators (under 30). 3. Poor supporting coverage. 4. Insureds that are new or not well known to agent.

When you feel that you may need an MVR ordered, send us the full name, date of birth, and driver’s license number of each driver. We will then either give you the go-ahead to write the coverage or order an MVR and get back to you with the results in a couple of days.

North Star Mutual Ins. Co. GA-UND-7 9-2019

WATERCRAFT LIABILITY (LIABILITY COVERAGE ONLY) (NS-75)

The basic liability policy provides coverage for bodily injury or property damage resulting from an activity of an insured involving any watercraft that is not owned or rented by an insured. It also covers bodily injury or property damage involving any watercraft while it is on the insured premises.

Off premises coverage for owned or rented watercraft is limited to those powered by either outboard or inboard/out-board motors totaling 50 horsepower or less on any one watercraft. Owned or rented sailing vessels are covered off premises if they are less than 26 feet in length.

Coverage may be extended to watercraft with larger motors. When adding this coverage, MVR’s should be checked out under the following circumstances:

1. High powered watercraft (100 horsepower or larger) 2. Young owners or operators 3. Poor supporting coverage 4. Insureds that are new or not well known to agent

When you feel an MVR may be needed, supply us with the full name, date of birth, and driver’s license number of each driver. We will either give the go-ahead to write the coverage or order an MVR and get back to you with the results as soon as possible. We should encourage them to order the reports.

BABYSITTING (NS-157A, FL-157M)

Liability and Medical Payments may be extended to coverage for the babysitting activities of an insured by adding Babysitting Coverage. Please refer to the Farm/Personal Liability section of the agent’s manual for rating and un-derwriting information.

OFFICE, PROFESSIONAL, PRIVATE SCHOOL OR STUDIO USE (NS-42A, FL-42)

If the insured maintains a permissible business office in his/her home, other than a personal farm office, the charge shown in the Farm/Personal Liability rate section of the agent’s manual should be made. This charge is also made if music lessons are given.

This coverage may not be used to cover an office used for a business that requires a Commercial General Liability Policy. (e.g. a building contractor)

INCIDENTAL SALES LIABILITY EXPOSURE (GL-90)

We have set up guidelines to handle situations where farm insureds are involved in sales of prepackaged products. Examples of such products are Seed Corn, Shaklee, Avon, Mary Kay Cosmetics, Fuller Brush, Tupperware and Amway. To be eligible, products must be prepackaged and involve no measuring, mixing, or assembly by the insured. For eligible situations the following charges should be used: $100,000 $300,000 $500,000 $1,000,000 Each $500 Add'l Limits $1,000 $1,000 $1,000 $1,000 Med Payments

Under $2,000 $ 12 $ 16 $ 18 $ 27 1 $ 2,000 - $ 4,999 30 37 40 60 2 $ 5,000 - $ 9,999 60 74 80 120 3 $10,000 - $19,999 100 120 130 195 4 $20,000 - $29,999 125 150 163 245 4 $30,000 - $39,999 133 160 173 260 4 $40,000 - $49,999 146 175 190 285 4

When receipts are $50,000 or over, the Incidental Sales Liability Exposure form is not used. Coverage is added to the policy by a statement added to the declarations page or to a blank endorsement. The statement should read as follows:

The word business as defined in this policy is amended so it does not include .

A annual charge applies for this extension of coverage.

North Star Mutual Ins. Co. GA-UND-8 9-2019

BUSINESS ACTIVITIES (NS-71)

Liability and Medical Payments may be extended to coverage for the business activities of an insured by adding Business Activities coverage. This coverage does not apply to a business owned or financially controlled by an insured. No coverage applies for losses arising out of the rendering or failing to render professional services except for teaching.

The classifications and ratings for the different types of Business Activities are found in the Farm/Personal Liability section of the Agents manual.

OTHER BUSINESS

We are often asked to insure other businesses on our CPP policy. Many times we can comply, often the request cannot be granted. Our FPL policy is meant to cover usual farming exposures and those that are incidental to the farming operations we can insure for additional premium. The FPL policy includes Completed Products and Oper-ations coverage, so the addition of other non-farming exposures has to be examined closely. Manufacturing expo-sures, for example are unacceptable, as are welding shops or exposures with heavy customer traffic on premises. When requested by an agent to add a business exposure, please determine what the insured is doing, what income it generates, and how long has the insured been in this business. Generally speaking, if it is not something incidental to the farming operations, the agent should be advised to seek coverage under a Commercial Policy.

SNOWBLOWING

Snowblowing done for pay on a regular basis is considered a business and is excluded for liability or medical payments. This does not fall under custom farming coverage. A farmer who goes to town and blows out his/her mother’s driveway and accepts payment for doing a couple of her neighbors would not be considered to be con-ducting a business and would have coverage under the FPL.

If receipts will be less than $1,000, coverage may be added to the Farm Liability policy by adding the following statement to the declarations page or to a change endorsement:

The word business as defined in this policy is amended so it does not include snowblowing performed by the insured.

A annual premium charge applies for this coverage.

When adding this coverage use these charges:

$100,000 $300,000 $500,000 $1,000,000 Each $500 Add'l Limits of Liability $1,000 $1,000 $1,000 $1,000 Med Payments

Charge $56 $76 $93 $140 $1

COMMERCIAL LIABILITY COVERAGE (NS-810)

This coverage used to be referred to as OL & T coverage. It may be added to a farm package policy when covering farmland, dwellings, buildings, and operations. Commercial General Liability written for other commercial exposures must be written on a separate liability policy. The NS-810 covers the premises/operations liability exposure that arises out of the ownership of the farm and would include farming activities on the insured premises and related operations. No personal liability is provided.

DWELLING LIABILITY COVERAGE (NS-800)

This coverage may be added to a farm package policy to provide liability coverage for a rental dwelling or a seasonal dwelling. This is used when there is no personal or farm personal liability on the policy to which the coverage may be added. The NS-800 may also be used to add liability coverage for 2, 3 or 4 family dwellings. No personal liability is provided.

Dwellings are eligible if they are located on 10 acres of land or less and have no outbuildings other than a private garage or small private storage building.

RENTAL DWELLING (NS-70)

When an insured has another farm location or a dwelling in town that is rented this can be addressed by adding Residence Premises Rented To Others to their PL or FPL policy. If, however, the insured has several rental prop-erties or buys and sells rental property then we need to use the NS-800 on each location.

North Star Mutual Ins. Co. GA-UND-9 9-2019

GUIDE TO HANDLING MISCELLANEOUS FARM LIABILITY SITUATIONS

APPLE ORCHARDS

Growing of apple trees and the sale of apples is automatically covered under the FPL policy. It is considered a farming operation. Someone that has just a handful of trees and sells a few apples to local people would not have to be charged any additional premium. However, when a farmer has a larger scale apple orchard, it is necessary to find out if there are any unusually hazardous operations that may make the risk undesirable to write. It is also necessary to determine what size the exposure is as an additional premium charge may be necessary. Questions to ask an agent would be: (1) Gross receipts? (2) Type of trees? (standard or dwarf) (3) Who picks the apples? (4) If customers do the picking, are ladders used? (5) Location of orchards from building site? (6) Are rides provided to orchards? And if so, with what? (7) Are there other related activities? (ex. making cider, selling pies, selling other items).

BEAUTY SHOPS

A beauty shop may be covered under Incidental Office if it is located in the insured’s dwelling, there are no employ-ees, and no tanning bed. Questions asked should be: (1) Is beauty shop located in dwelling? (2) Are there any employees? (3) Is there a tanning bed?

BED ‘N BREAKFAST (GL-90)

Liability for bed ‘n breakfast operations may be extended from the farm liability if the receipts for the operation are less than $3,000 and no unusual activities take place. It is important to find out what the receipts are and if they do anything other than provide a place to sleep and eat. Examples might be allowing customers to have tours of the farm, help with the milking, drive the tractor, or any other type of activity. If the receipts are $3,000 or over, this coverage must be written on a commercial liability policy. When you have a bed ‘n breakfast situation that can be covered under the farm liability, please call a North Star Mutual farm underwriter to get the proper charge.

BOAT STORAGE, CAMPERS (GL-90)

Where insureds rent out space for boat and/or camper storage, generally a separate commercial liability policy is needed. If the total units are 6 or fewer, Incidental Business Pursuits Coverage (GL-90) may be added.

CHRISTMAS TREES

The raising and selling of Christmas trees is considered a farming operation and may be covered under the farm liability if it is not done on too large of a scale and there are no hazardous operations performed. An additional charge is normally made if the risk is acceptable. The following questions may be asked: (1) What are the gross receipts? (2) How many trees are sold per year? (3) Are trees sold to individuals or shipped out in truckloads? (4) Who cuts the trees? (5) What tools are used to cut the trees? (6) If the buyer cuts the trees, whose tools are used? (7) Does the insured provide rides to the Christmas trees? If so, with what? (8) Are other items sold?

CONTACT GROWERS LIMITED LIABILITY (CF-2026)

Contract Growers Limited Liability coverage is available to those insureds that raise livestock under contract for others. It covers the insured’s legal liability if the insured’s negligence causes the loss of the livestock due to as-phyxiation, suffocation, hypothermia or hyperthermia. This coverage is meant to supplement first party suffocation coverage, it is not meant to replace it. Premium is based on the maximum capacity of the grower’s facilities and the limit of liability being carried.

North Star Mutual Ins. Co. GA-UND-10 9-2019

CUSTOM FEEDING

Custom feeding falls under the definition of farming and may be written, as long as it is done by an individual whose main occupation is farming. We won’t insure a corporation that only does custom feeding. Coverage for custom feeding applies just as if the animals belonged to the insured. The insured may insure the animals for physical damage if he is paid a dollar amount per head because he would then have an insurable interest in them. It is important in these situations to remind the agent that livestock being custom fed are in the care of the insured and there would be no liability coverage if the insured negligently causes injury or death to the livestock.

DOGS

The raising and selling of dogs is a business and is not covered by Personal or Farm Personal Liability. When an insured raises dogs to sell, this exposure may be able to be written on a Commercial General Liability policy. This depends on the size of the operation and the size and breed of dog involved as well as other factors. We are not able to extend liability from the farm policy for this exposure except in rare instances when the insured only has one or two dogs with which he raises pups. If the insured has a dog kennel operation and has no commercial policy covering this exposure, we are unwilling to write the farm liability. This is due to the gray area that exists if a loss occurs involving a dog that may be a personal pet or may be part of the dog raising business. In most dog kennel situations, it is best to contact a North Star Mutual farm underwriter with as much information as possible.

GRAVEL PITS

If a gravel pit is located on the insured premises and is not being used, coverage automatically applies for claims brought against the insured because of this pit. However, if the gravel pit is being leased out to a contractor or being used to sell gravel by the insured, more than likely, there would not be coverage unless special provisions are made to cover it. The question we are most concerned about is, regardless of its use, whether the gravel pit presents hazards beyond what we want to cover. If it is something we are willing to cover, we need to determine what type of charge is adequate for the exposure that exists.

You should ask some of the following questions: (1) Is the pit being used? (2) Who uses it and to what extent? (3) Is a contractor leasing it? If so, we want to make sure the contractor has a policy that covers this pit and we would like to have the insured added as an additional insured on that policy. (4) Is there easy access to the pit? (location from major roads, gates or fences) (5) Is there water in the pit? If so, how deep? (6) Is there known activity at the pit? (ex. swimming, shooting, 4-wheeling).

HUNTING ON INSURED PREMISES FOR A FEE (GL-90)

If an insured allows people to hunt on his/her premises, the FPL policy provides liability protection for him/her as long as he/she does not charge the hunters a fee. If the insured does charge hunters a fee on a regular basis, he/she is operating a business other than farming and is not covered for that activity. We are able to extend liability coverage from the farm liability for an additional charge if the risk is not extreme. We will not provide coverage if the insured releases game for the hunters to shoot. The following questions should be asked: (1) Total receipts? (2) Charge per hunter? (3) Type of hunting? (4) How long has insured been doing this? (5) Are blinds provided? (6) Is any game released for the hunters?

PARTIES/AUCTIONS

For large parties, receptions and all auctions, a minimum charge of $50.00 would apply. If over 400 people will attend, we generally would not be interested in providing liability coverage. Where serving alcohol to minors may be involved or any unsupervised parties or receptions are held we would not want to provide liability coverage.

$100,000 $300,000 $500,000 $1,000,000 Each $500 Add'l Limits $1,000 $1,000 $1,000 $1,000 Med Payments

1-50 People $20 $20 $25 $38 $1 51-200 People 25 25 30 45 1 201-400 People 30 30 35 53 1

North Star Mutual Ins. Co. GA-UND-11 9-2019

PICK YOUR OWN STRAWBERRIES/RASPBERRIES

If an insured has farm liability coverage, the growing and selling of home-grown fruit, such as strawberries or rasp-berries, is automatically covered. If the insured picks this produce and sends it off to a market, there is no problem. However, if the produce is sold on premises or if people come and pick their own, we do need to find out more information to determine if there are aspects of the exposure that require an additional charge. We ask that you find out the following information: (1) What are the gross receipts? (2) Approximately how many people come out to pick the fruit? (3) Do people walk to the patches or are rides provided? (4) If rides are provided, what is used to transport the people?

ROAD DITCH MOWING (GL-90)

The mowing of road ditches for others by an insured does not fall under the category of custom farming. This activity is not farming. If an insured is mowing a crop, such as alfalfa, for someone else, this is custom farming. When an insured mows road ditches for other individuals or for the township or county, we normally are able to extend liability for this if it is not done on too large of a scale, or if there is nothing unusually hazardous about it. We should find out the following information: (1) What are the gross receipts for the mowing? (2) For whom is the mowing being done? (3) Where is the mowing being done? (along township roads, county roads and/or state roads). For interstate highways contact a North Star Mutual farm underwriter.

ROADSIDE STANDS

The operation of a roadside stand is covered under the Farm Liability policy as a farming operation if the insured is only selling products that he/she is producing in his/her farming operation. If it is just a small setup with receipts under $1,000, no charge need be made. If receipts are $1,000 or more, or if produce is sold at a different location, an additional flat charge should be added. If products are sold that are not produced by the insured’s farming operation, this becomes a business and has no automatic coverage.

SAWMILLS

Sawmills are an exposure that need prior Home Office approval. In general, this is not an exposure we care to write. However, if the sawmill is for use by the insured only and the lumber cut is only for the insured's use, we may consider covering this risk.

TRAMPOLINES AND SWIMMING POOLS

Trampolines and swimming pools present an increase in hazard and need to be addressed individually when writing liability coverage for an insured. If an insured lives in a rural area, owns a trampoline, and is a good liability risk we need to make an additional charge of $25 for the increase in exposure presented by the trampoline. If the insured lives in town, or an area that sees more traffic by the insured premises, we may not want to provide liability coverage. The same concerns apply if an insured has a swimming pool. Above ground pools, pools in town and pools with diving boards need to be approved by your underwriter. Diving platforms in lakes would also need prior approval. Be aware that risks with diving boards are not generally accepted but in certain cases may be approved with an additional premium charge.

WIND GENERATING TOWERS / FREE STANDING SOLAR PANELS

Wind Generating Towers and Free Standing Solar Panels may be insured in the G-3. Total Property limit on those items should not exceed $80,000. If the solar array is capable of producing electricity in excess of 500 kilowatts, we must be contacted for underwriting approval.

Should the insured sell power back to the power company, the following liability charge is made for this.

Limit $300,000 $500,000 $1,000,000

Charge $50.00 $60.00 $70.00

North Star Mutual Ins. Co. GA-UND-12 9-2019

OPTIONAL INDIVIDUAL RISK PREMIUM MODIFICATION SUPPLEMENT

ELIGIBILITY

This supplement can only be used with the Combination Package Policy (CPP). This supplement is designed to be adopted by both companies (the Township Mutual and North Star Mutual). Credit or debit can only be approved by the General Agent.

RATING PROCEDURE

The following modifications may be applied to recognize special characteristics of the risk that are not fully reflected in the premiums or rates. The total amount of credit or debit developed using the following table may not exceed 10%. When the non-farming Discount applies on the liability, a maximum credit of 5% will be allowed. The credit or debit developed by use of this Supplement is applied after the application of all other rating procedures. The credit or debit developed by use of this Supplement applies to the full policy premium including Liability and Inland Marine. RANGE OF MODIFICATION RISK CHARACTERISTICS CREDIT DEBIT

1. CARE AND CONDITION OF EQUIPMENT AND PREMISES 5% to 5% This includes such things as maintenance of buildings, age of buildings,

housekeeping, storage practices, superior structural features, cooperation of insured on recommendations.

2. DAMAGE SUSCEPTIBILITY 5% to 5% This includes such things as spread of personal property distance between

buildings, control of hazards, protective equipment, location of risk. 3. LOSS EXPERIENCE 5% to 5% This includes such things as past loss experience relative to the number of

exposure units, (amount of property insured, number of buildings), protective equipment, preventative measures.

North Star Mutual Ins. Co. GA-UND-13 9-2019

MOBILE HOME UNDERWRITING GUIDELINES

Mobile manufactured homes are built in a factory on a steel chassis according to the requirements of the Depart-ment of Housing and Urban Development. Below is a copy of the HUD plate affixed to a mobile manufactured home.

Following is North Star Mutual’s Underwriting guidelines for Mobile Manufactured Homes

The home must meet all of the listed qualifications in order to be placed in that class.

CPP

Generally, Mobile Homes will not be written as A1. However, if it meets the following qualifications, it may be considered, but will require underwriting approval:

• Less than 5 years old • Insured to 90% of RC with a minimum of $60,000 • On a full basement or other type of continuous foundation. (Pillars or posts are not considered to be continuous) • Greater than a single-unit wide • Pitched roof • Owner occupied • Township Mutual must approve

A2 Qualifications:

• Insured at 100% of its ACV • Greater than single-unit wide • Pitched roof • Minimum value of $25,000 • Township Mutual must approve

Special form is available on A2 homes.

Replacement cost is only available if all of the qualifications under A1 are met but the home is being placed in class A2.

A3 Qualifications: • All other mobile homes not qualifying for A1 or A2 that are still in “insurable” condition per North Star

and the Township Mutual. At 20 years of age, A1 mobile manufactured homes should be moved to class A2 with ACV coverage. RC should also be removed from any A2 homes.

North Star Mutual Ins. Co. GA-UND-14 9-2019

CDO

Generally, Mobile Homes will not be written on CDO. However, if it meets the following qualifications, it may be considered, but will require underwriting approval:

• Less than 5 years old • Insured to 90% of RC with a minimum of $60,000 • On a full basement or other type of continuous foundation. (Pillars or posts are not considered to be

continuous) • Greater than a single-unit wide • Pitched roof • Owner occupied • Township Mutual must approve

North Star Mutual Ins. Co. GA-UND-15 9-2019

DECLINE\CANCEL\NON-RENEW\NON-PAY TIME REQUIREMENTS

NORTH STAR MUTUAL INSURANCE COMPANY

Farm Policy

Township Mutual North Star Mutual

DECLINE (policy less than 90 days old) (policy less than 60 days old)

New Business and Endorsements 10 Days (67A.18, Subd. 2) 20 Days (65A.01, Subd. 3C; 60A.37)

No reason needed Reason needed

CANCEL 10 Days (67A.18, Subd. 2) 30 Days (65A.01, Subd. 3C; 60A.37)

Midterm No reason needed Reason needed

NON-RENEW 10 Days (67A.18, Subd. 2) 60 Days (65A.01, Subd. 3C; 60A.37)

Effective on anniversary date No reason needed Reason. needed

NON-PAYMENT 10 Days (67A.18, Subd. 2) 20 Days (65A.01, Subd. 3C; 60A.37)

No reason needed Reason needed Please show the correct effective cancellation date for your Township Mutual and for North Star Mutual. Add 5 days mail time for North Star Mutual.

CDO (Homeowners) Policy

67A.191, Subd. 2; 65A.01, Subd. 3c; 65A.29, Subd. 7 (applies to both Township Mutuals and North Star Mutual)

Township Mutual North Star Mutual

DECLINE (policy less than 60 days old) 20 Days 20 Days

New Business and Endorsements Reason needed Reason needed

CANCEL 30 Days 30 Days

Midterm Reason needed Reason needed

NON-RENEW 60 Days 60 Days

Effective on anniversary date Reason needed Reason needed

CONDITIONAL RENEWAL/ 90 Days (min) prior to Anniversary send notice of CHANGE IN COVERAGE improvements needed.

60 Days prior to Anniversary send reminder and

Conditional Renewal form.

Reasons needed

NON-PAYMENT 20 Days 20 Days

Reason needed Reason needed Use MAFMIC Cancellation forms TP-10 or PH11 where required.

North Star Mutual Ins. Co. GA-UND-16 9-2019

SAMPLE LETTERS

This page and the following pages titled Sample Letters are samples of letters that you may use in underwriting business packaged with North Star Mutual. You may place these letters on your Company's letterhead. These letters may be modified as needed to fit individual underwriting situations. [Date] Insured: [ ] Address: [ ] [ ] [ ] RE: Policy Number: [ ] I hereby give permission to remove my name from the above listed policy. Effective date: [ ] Print Name: [ ] Signature: [ ] Please sign where indicated and return a signed copy to: [Sign] [Township Mutual] [Address] [City, State Zip Code]

North Star Mutual Ins. Co. GA-UND-17 9-2019

SAMPLE LETTERS

[Date] Agency: [ ] Address: [ ] [ ] [ ] RE: Insured: [ ] Policy Number (if applicable): [ ] Trampoline Questionnaire

1. Is there a fence surrounding the yard with a locked gate? 2. Is there adult supervision and/or “spotters” present? 3. Who is allowed to use the trampoline? 4. Who is allowed to use the trampoline when the applicant/insured is not at home? 5. How far away is the closest road or neighbor? 6. Can the trampoline be seen from the road?

A photo of the trampoline is required. [Sign] [Print Name] [Title]

North Star Mutual Ins. Co. GA-UND-18 9-2019

SAMPLE LETTERS

[Date] Agency: [ ] Address: [ ] [ ] [ ] RE: Insured: [ ] We have received an application for the above named insured. However, we will need the insured to cancel the current policy [ ] with us. Please have the insured sign a Lost Policy Receipt or return the original copy of the policy to us. Upon receipt of either, we will be able to proceed with the cancellation and your application. Thank you! [Sign] [Print Name] [Title]

North Star Mutual Ins. Co. GA-UND-19 9-2019

SAMPLE LETTERS

[Date] Agency: [ ] Address: [ ] [ ] [ ] RE: Insured: [ ] Policy Number: [ ] Please be advised that we would not be willing to reinstate this policy if it is cancelled for non-payment again. Thank you! [Sign] [Print Name] [Title]

North Star Mutual Ins. Co. GA-UND-20 9-2019

SAMPLE LETTERS

[Date]

Agency: [ ] (first notification letter) Address: [ ] [ ] [ ] RE: Insured: [ ] Policy Number: [ ] Dear Agent, Recently the Insureds’ dog bit “two individuals” and a liability claim has been submitted. In order to continue to provide liability coverage to these insured’s, they must dispose of this dog. Please discuss this with the insureds and get back to us by [ Date ]. Should we not hear from you by this date we will proceed with deletion of liability coverage for this Insured. If you have any questions, please do not hesitate to call. Sincerely, [Sign] [Print Name] [Title] cc: North Star Mutual (Note to Township Mutual: If the Insured’s do not comply with getting rid of the dog, then send the “deletion of liability” notice.)

North Star Mutual Ins. Co. GA-UND-21 9-2019

SAMPLE LETTERS

[Date] Insured: [ ] Address: [ ] [ ] [ ] RE: Insured: [ ] Policy Number: [ ] Dear [insured], This is to inform you of the deletion of liability coverage from policy number [……….] effective [35 days from date of this letter]. This is due to the dog bite claim of [……….]. If the dog has been disposed of and you wish to reinstate liability coverage to this policy, please notify your agent. He/she will then discuss reinstatement of liability coverage with North Star Mutual. Sincerely, [Sign] [Print Name] [Title] cc: North Star Mutual P.O. Box 48 Cottonwood, MN 56229

North Star Mutual Ins. Co. GA-UND-22 9-2019

SAMPLE LETTERS

[Date] Agency: [ ] Address: [ ] [ ] [ ] RE: Insured: [ ] Policy Number: [ ] We have received a request to cancel the above named policy. Please return the original copy of the policy to us, or have the insured sign a Lost Policy Receipt and return it to our office. Upon receipt of either, we will be able to proceed with the cancellation and credit your account. Thank you! [Sign] [Print Name] [Title]

North Star Mutual Ins. Co. GA-UND-23 9-2019

SAMPLE LETTERS

[Date] Agency: [ ] Address: [ ] [ ] [ ] RE: Insured: [ ] Policy Number: [ ] The enclosed mail has been returned to us by the Post Office due to an incorrect address. Will you kindly forward this to the mortgagee? Please provide us with a correct address. Thank you for your assistance in this matter. [Sign] [Print Name] [Title]

North Star Mutual Ins. Co. GA-UND-24 9-2019

CDO Cancellation / Non-Renewal Procedure When underwriting issues are found either from an inspection or loss adjustment, the policy is reviewed and a determination is made if the policy needs to be cancelled or non-renewed, or if it can be salvaged with coverage changes. These coverage changes may be, adding ACV or an exclusion to the roof covering, excluding exterior paint, increasing the deductible and/or removing an additional coverage such as Back up of Sewers and Drains as well as other possible coverage changes.

When underwriting issues are severe enough to cancel a policy mid-term or non-renew a homeowner policy, the following procedure will need to be followed:

1. A letter must be written to the insured with the underwriting issues that need to be addressed for coverage to continue. These would be items like, replacement of roofing material, painting needed, remove excess debris, etc. This letter should also state that if the changes are not completed by a certain date, either cancellation or non-renewal will be initiated. A sample letter, “1st Notice”, is in the GA Section of the North Star website under Conditional Renewal. This would depend on the seriousness of the underwriting issue and the time frame until renewal. A serious underwriting reason may be:

a. The property is in major disrepair with very little to no pride in ownership.

b. There are non weather related losses in addition to shingles being deteriorated.

c. There are numerous late pay cancellations in addition to a. or b. above.

d. Other underwriting considerations in addition to a., b. or c. above.

2. 30 days from the date of the first letter, a reminder letter must be sent to the insured. A sample “Reminder Letter” is in the GA section of the North Star Website under Conditional Renewal.

3. Should the insured not comply with the underwriting requests stated in the letter and depending on the time frame until renewal as well as the seriousness of the underwriting issues, a 30 day mid-term cancellation or a 60 day non-renewal may be sent by Proof of Mailing.

In the event, the underwriting issues are not severe enough to require cancellation or non-renewal, but changes are needed to allow the risk to be insurable, a conditional renewal may be used. A conditional renewal resembles a normal renewal, but has coverage reductions from those in effect on the previous policy term. In other words, we are offering a renewal to the policyholder with these new terms. The State of Minnesota sees coverage reductions to a policy as needing “non-renewal” procedures. The following procedure should be followed in these instances:

1. At least 90 days before the renewal (CDO Anniversary date), a letter must be written to the insured with underwriting issues that need to be addressed for coverage to continue. These underwriting issues would be like, replacement of roofing material, painting needed, etc. This letter should also state that if the changes are not completed the policy will be conditionally renewed with the applicable change in coverage.

2. 30 days from the first letter or at least 60 days from renewal, a reminder letter must be sent to the insured.

If the insured does not comply with the underwriting requests stated in the first letter, a conditional renewal must be sent with the reminder letter reflecting the appropriate change in coverage and must be sent by proof of mailing.

North Star Mutual Ins. Co. GA-UND-25 9-2019

Sample Conditional Renewal Letter Date: Insured: Address: City, State, Zip: Dear [ ],

On (date) an inspection was completed on the property insured under policy number [ ]; renewal date [ ]. During this inspection it was noted that the (shingles on the dwelling) have deteriorated. In order for us to continue insuring them at replacement cost coverage we request the shingles be replaced. In the event the shingles are not replaced by (date), coverage will change to Actual Cash Value on the renewal date of this policy. Please let us, or your agent, know when you have completed the shingle replacement. Cordially, cc. Agency ccc. North Star

North Star Mutual Ins. Co. GA-UND-26 9-2019

Sample Reminder Letter

REMINDER NOTICE

Date: Insured Name and Mail Address Agency Name and Mail Address Dear [ ], On (date) a letter was sent to you requesting that the shingles be replaced in order to maintain replacement cost coverage to the shingles on your dwelling. As of now, we have not received an update regarding their replacement. In the event the shingles have not been replaced, coverage will change to Actual Cash Value on the renewal date, (date), as stated in our previous letter. To comply with State Statutes, we have attached a Conditional Renewal Notice reflecting this coverage change. Since this is a decrease in coverage from replacement cost to actual cash value, the policy renewal premium has been reduced to reflect this change. In the event you have replaced the shingles on the dwelling, please call your agent and discuss adding replacement cost coverage and the premium charge associated with this coverage. Please contact your agent if you have any questions regarding this notice. They are listed above. Cordially, cc. Agency ccc. North Star

North Star Mutual Ins. Co. GA-UND-27 9-2019

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