Residential Property: Homeowners, Tenants,Dwelling Fire, Extended Coverage, Additional Extended Coverage and Physical Loss Form Benchmark Rates - Map of Residential Property Rating Territories

Texas Department of Insurance 333 Guadalupe Street P.O. Box 149104 Austin, Texas 78714-9104 512/463-6169 December 3, 1998 BULLETIN NO. B-0085-98 TO ALL INSURANCE COMPANIES, CORPORATIONS, MUTUALS, ASSOCIATIONS, OR OTHER INSURERS WRITING RESIDENTIAL PROPERTY INSURANCE IN THE STATE OF TEXAS RESIDENTIAL PROPERTY: HOMEOWNERS, TENANTS, DWELLING FIRE, EXTENDED COVERAGE, ADDITIONAL EXTENDED COVERAGE AND PHYSICAL LOSS FORM BENCHMARK RATES On November 12, 1998, the Commissioner of Insurance, in accordance with the statutory requirement of Article 5.101, Texas Insurance Code, made the following determinations as they relate to benchmark rates for residential property: homeowners, tenants, dwelling fire, extended coverage, additional extended coverage and physical loss form insurance rates. The Commissioner ordered changes in benchmark rates for the above-listed residential property coverages. The overall residential property rate change is -5.5%. The Commissioner also ordered changes in the rating territories of four counties. The changes in benchmark rates by coverage and in the rating territories are summarized in the attached machine letter. The changes in the benchmark rates ordered by the Commissioner are effective February 1, 1999. For flex rate filings, Article 5.101 of the Texas Insurance Code states that within 30 days of the effective date of the benchmark rates each insurer that proposes to write that line of insurance during the effective period of the benchmark rates shall make a rate filing with the Texas Department of Insurance. The new rates take effect on the date specified by the insurer, but not later than the 60th day after the date of filing of the rates with the Department. From and after the effective date of the benchmark, February 1, 1999, and prior to the new filing, the insurer’s previously filed rates shall remain in effect. Any policy effective on or after the effective date of the insurer’s new flex rate filing must be written using the new rates. Please refer to the enclosed rating samples for homeowners and dwelling coverages for complete, detailed examples of the rating rules. These examples are intended to incorporate most of the rating rules in the Texas Personal Lines Commissioner’s Bulletin No. B-0085-98 Page 2 Manual, and as such, do not necessarily represent scenarios that would actually occur. The following tables are not included in this machine letter since they remain unchanged from last year: Homeowners Tables B, C, D-1, and D-2, Tenants Tables B, C, D-1, and D-2, Dwelling Tables B, C-1, C-2, 1A, 1B, 13, and 17, and the Homeowners and Dwelling Deductible Adjustment Charts. All flex filings should be submitted to: TEXAS DEPARTMENT OF INSURANCE PROPERTY AND CASUALTY INTAKE UNIT (MC 104-3B) P.O. BOX 149104 AUSTIN, TX 78714-9104 Questions regarding residential property rate filings should be directed to Sara Jimenez, Property & Casualty Actuarial Section, (512) 305-6747, or to Jennifer Wu, Property & Casualty Actuarial Section, (512) 475-3016. Sincerely, Philip Presley, FCAS, MAAA Chief Property & Casualty Actuary Technical Analysis Division enclosure TEXAS RESIDENTIAL PROPERTY INSURANCE SUMMARY OF APPROVED FEBRUARY 1, 1999 BENCHMARK RATE CHANGES Latest Year Premiums at Approved Present Rates Statewide COVERAGE (Thousands) Average Homeowners $2,178,906 -6.0% Tenants $94,043 +2.0% Fire - Dwellings $121,592 +10.3% Extended Coverage - Dwellings $154,380 -5.6% Additional Extended Coverage $4,030 +7.2% Physical Loss Form $41,344 -8.2% ALL COVERAGES $2,594,295 -5.5% -3- TEXAS RESIDENTIAL PROPERTY INSURANCE SUMMARY OF APPROVED FEBRUARY 1, 1999 RATING TERRITORY CHANGES COUNTY Previous Rating Territory New Rating Territory Kimble 16C 13 McCulloch 16C 16N Mason 16C 13 Menard 16C 13 -4- EFFECTIVE FEBRUARY 1, 1999 TEXAS PROPERTY INSURANCE RATING TERRITORIES County Territory County Territory County Territory County Territory County Territory Anderson 14 Crockett 15C Hays 13 Madison 14 Shackelford 19N Andrews 15N Crosby 18 Hemphill 20 Marion 17 Shelby 14 Angelina 14 Culberson 15C Henderson 14 Martin 15N Sherman 20 Aransas 10 Dallam 20 Hidalgo 11 Mason 13 Smith 14 Archer 19N Dallas 2 Hill 16C Matagorda 10 Somervell 16C Armstrong 20 Dawson 18 Hockley 18 Maverick 12 Starr 12 Atascosa 12 Deaf Smith 20 Hood 16C Medina 12 Stephens 19C Austin 13 Delta 17 Hopkins 17 Menard 13 Sterling 15N Bailey 18 Denton 4 Houston 14 Midland 15N Stonewall 18 Bandera 12 De Witt 13 Howard 15N Milam 13 Sutton 15C Bastrop 13 Dickens 18 Hudspeth 15C Mills 16C Swisher 18 Baylor 19N Dimmit 12 Hunt 17 Mitchell 15N Tarrant 3 Bee 11 Donley 20 Hutchinson 20 Montague 19C Taylor 16N Bell 13 Duval 12 Irion 15N Montgomery 14 Terrell 15C Bexar 5 Eastland 16C Jack 19C Moore 20 Terry 18 Blanco 13 Ector 15N Jackson 11 Morris 17 Throckmorton 19N Borden 18 Edwards 12 Jasper 14 Motley 18 Titus 17 Bosque 16C Ellis 14 Jeff Davis 15C Nacogdoches 14 Tom Green 15N Bowie 17 El Paso 7 Jefferson 10 Navarro 14 Travis 6 Brazoria 10 Erath 16C Jim Hogg 12 Newton 14 Trinity 14 Brazos 13 Falls 13 Jim Wells 11 Nolan 15N Tyler 14 Brewster 15C Fannin 17 Johnson 16C Nueces 9 Upshur 17 Briscoe 18 Fayette 13 Jones 19N Ochiltree 20 Upton 15N Brooks 11 Fisher 18 Karnes 13 Oldham 20 Uvalde 12 Brown 16C Floyd 18 Kaufman 17 Orange 11 Val Verde 12 Burleson 13 Foard 19N Kendall 13 Palo Pinto 19C Van Zandt 17 Burnet 13 Fort Bend 11 Kenedy 10 Panola 14 Victoria 11 Caldwell 13 Franklin 17 Kent 18 Parker 19C Walker 14 Calhoun 10 Freestone 14 Kerr 12 Parmer 18 Waller 14 Callahan 16N Frio 12 Kimble 13 Pecos 15C Ward 15N Cameron 10 Gaines 18 King 18 Polk 14 Washington 13 Camp 17 Galveston 8 Kinney 12 Potter 20 Webb 12 Carson 20 Garza 18 Kleberg 10 Presidio 15C Wharton 11 Cass 17 Gillespie 13 Knox 19N Rains 17 Wheeler 20 Castro 18 Glasscock 15N Lamar 17 Randall 20 Wichita 19N Chambers 10 Goliad 11 Lamb 18 Reagan 15N Wilbarger 19N Cherokee 14 Gonzales 13 Lampasas 13 Real 12 Willacy 10 Childress 18 Gray 20 La Salle 12 Red River 17 Williamson 13 Clay 19N Grayson 17 Lavaca 13 Reeves 15C Wilson 13 Cochran 18 Gregg 14 Lee 13 Refugio 10 Winkler 15N Coke 15N Grimes 14 Leon 14 Roberts 20 Wise 19C Coleman 16N Guadalupe 13 Liberty 11 Robertson 13 Wood 17 Collin 4 Hale 18 Limestone 14 Rockwall 4 Yoakum 18 Collingsworth 20 Hall 18 Lipscomb 20 Runnels 16N Young 19C Colorado 13 Hamilton 16C Live Oak 11 Rusk 14 Zapata 12 Comal 13 Hansford 20 Llano 13 Sabine 14 Zavala 12 Comanche 16C Hardeman 19N Loving 15C San Augustine 14 Concho 16N Hardin 11 Lubbock 18 San Jacinto 14 Cooke 19C Harris 1 Lynn 18 San Patricio 10 Coryell 13 Harrison 17 McCulloch 16N San Saba 13 Cottle 18 Hartley 20 McLennan 16C Schleicher 15C Crane 15N Haskell 19N McMullen 12 Scurry 18 EXAMPLE PREMIUM CALCULATION FOR TEXAS FORM HO-B Policy Information Coverage Limits Coverage A - Dwelling $100,000 Coverage B - Contents $60,000 Coverage C - Personal Liability $300,000 Coverage D - Medical Payments $1,000 Deductible Amount Deductible No.1 - Wind & Hail $250 Deductible No. 2 - Other than Wind & Hail $250 Endorsements Surcharge HO-101 - Replacement Cost +5.0% HO-110 - Increased Jewelry Coverage $3,000 HO-330 - Claims Surcharge +5.0% Optional Credits Credit Central Station Alarm -12.0% Senior Citizen -5.0% Rating Information Construction Type BV Protection Class 6 Previous Applicable Key Rate (already halved) 0.13 Territory 9 Flex Percentage +5.0% Policy Term 1 year Basic Premium Calculation Base Premium (HO Table A) $223.000 Protection/Construction Factor (HO Table B) x 1.100 $245.300 (round to three decimals) Amount of Insurance Factor (HO Table C) x 4.886 (see below) $1,198.536 (round to three decimals) Rate Capping Factor - Year 1 (HO Table D-2) x 1.000 Basic Benchmark Premium $1,198.536 (round to three decimals) Flex Percent Factor x 1.05 $1,258.463 (round to three decimals) Basic Premium (Rounded) $1,258 Amount of Insurance Factor Each Additional 1,000 Coverage B Factor (HO Table C) 0.015 Increased Coverage B from 40,000 to 60,000 (in 000's) x 20 0.300 (round to three decimals) 100,000 Amount of Ins Factor (HO Table C) + 4.586 Amount of Insurance Factor 4.886 Using Rating Rules Effective 2/1/1999 - 7 - Deductible Adjustments (Deductible Nos. 1 & 2) Basic Premium $1,258.000 Deductible No. 1 Adjustment Factor x 0.110 $138.380 (round to three decimals) Deductible No. 1 Adjustment (Rounded) $138 Basic Premium $1,258.000 Deductible No. 2 Adjustment Factor x 0.150 $188.700 (round to three decimals) Deductible No. 2 Adjustment (Rounded) $189 Increased Liability Limits and Medical Payments Increased Limits Base Premium (Premium Chart No. 28) $7.510 Flex Percent Factor x 1.05 $7.886 (round to three decimals) Increased Limits Surcharge (Rounded) $8 Endorsements HO-101 Basic Premium $1,258.000 Replacement Cost Surcharge Factor x 0.05 $62.900 (round to three decimals) Replacement Cost Surcharge (Rounded) $63 HO-110 Increased Jewelry Coverage Amount (in 00's) 25 Premium per $100 (Premium Chart No. 6) x $1.070 $26.750 (round to three decimals) Flex x 1.05 $28.088 (round to three decimals) Increased Jewelry Coverage Surcharge (Rounded) $28 Optional Credits Central Station Alarm Basic Premium $1,258.000 Central Station Alarm Credit Factor x -0.12 -$150.960 (round to three decimals) Central Station Alarm Credit (Rounded) -$151 Senior Citizen Discount Basic Premium $1,258.000 Senior Citizen Discount Factor x -0.05 -$62.900 (round to three decimals) Senior Citizen Discount (Rounded) -$63 Using Rating Rules Effective 2/1/1999 - 8 - Final Policy Premium Premium Amount Basic Premium $1,258 Deductible No. 1 Adjustment $138 Deductible No. 2 Adjustment $189 Increased Limits Surcharge $8 Endorsements $91 Optional Credits + -$214 Total Policy Premium Amount $1,470 Claims Surcharge + $74 (see below) Final Policy Premium Amount $1,544 Claims Surcharge Endorsement HO-330 Total Policy Premium Amount $1,470.000 Claims Surcharge Factor x 0.05 $73.500 (round to three decimals) Claims Surcharge (Rounded) $74 Using Rating Rules Effective 2/1/1999 - 9 - EXAMPLE PREMIUM CALCULATION FOR TEXAS FORM HO-BT (Apartment) Policy Information Coverage Limits Coverage B - Contents $65,000 Coverage C - Personal Liability $300,000 Coverage D - Medical Payments $1,000 Deductible Amount Deductible No.3 - All Perils $250 Endorsements Surcharge HO-101 - Replacement Cost +15.0% HO-110 - Increased Jewelry Coverage $3,000 HO-330 - Claims Surcharge +5.0% Optional Credits Credit Senior Citizen -5.0% Other Information Single Entrance to Building used by more than four families Not an FR/SFR/Sprinkler Risk Rating Information Construction Type BV Protection Class 6 Previous Applicable Key Rate (already halved) 0.13 Territory 9 Flex Percentage +5.0% Policy Term 1 year Basic Premium Calculation Base Premium (Tenants Table A) $54.000 FR/SFR Factor x 1.000 $54.000 (round to three decimals) Protection/Construction Factor (Tenants Table B) x 1.100 $59.400 (round to three decimals) Amount of Insurance Factor (Tenants Table C) x 5.050 (see AOI calculation) $299.970 (round to three decimals) Rate Capping Factor - Year 1 (Tenants Table D-2) x 1.000 $299.970 (round to three decimals) Single Entrance Surcharge (Premium Chart No. 39) + $16.130 Basic Benchmark Premium $316.100 (round to three decimals) Flex Percent Factor x 1.05 $331.905 (round to three decimals) Basic Premium (Rounded) $332 Using Rating Rules Effective 2/1/1999 -10- Amount of Insurance Factor Each Additional 1,000 Coverage B Factor (Tenants Table C) 0.080 Increased Coverage B from 40,000 to 65,000 (in 000's) x 25 2.000 (round to three decimals) 40,000 Amount of Ins Factor (Tenants Table C) + 3.050 Amount of Insurance Factor for 65,000 5.050 Deductible Adjustments (Deductible No. 3) Basic Premium $332.000 Deductible No. 3 Adjustment Factor x 0.050 $16.600 (round to three decimals) Deductible No. 3 Adjustment (Rounded) $17 Increased Liability Limits and Medical Payments Increased Limits Base Premium (Premium Chart No. 28) $7.510 Flex Percent Factor x 1.05 $7.886 (round to three decimals) Increased Limits Surcharge (Rounded) $8 Endorsements HO-101 Basic Premium $332.000 Replacement Cost Surcharge Factor x 0.15 $49.800 (round to three decimals) Replacement Cost Surcharge (Rounded) $50 HO-110 Increased Jewelry Coverage Amount (in 00's) 25 Premium per $100 (Premium Chart No. 6) x $1.070 $26.750 (round to three decimals) Flex x 1.05 $28.088 (round to three decimals) Increased Jewelry Coverage Surcharge (Rounded) $28 Optional Credits Senior Citizen Discount Basic Premium $332.000 Senior Citizen Discount Factor x -0.05 -$16.600 (round to three decimals) Senior Citizen Discount (Rounded) -$17 Using Rating Rules Effective 2/1/1999 -11- Final Policy Premium Premium Amount Basic Premium $332 Deductible No. 3 Adjustment $17 Increased Limits Surcharge $8 Endorsements $78 Optional Credits + -$17 Total Policy Premium Amount $418 Claims Surcharge + $21 (see below) Final Policy Premium Amount $439 Claims Surcharge Endorsement HO-330 Total Policy Premium Amount $418.000 Claims Surcharge Factor x 0.05 $20.900 (round to three decimals) Claims Surcharge (Rounded) $21 Using Rating Rules Effective 2/1/1999 -12- EXAMPLE PREMIUM CALCULATION FOR TEXAS DWELLING COVERAGES Example No. 1 Policy Information Coverage Limits Fire (Dwelling) $75,500 Extended Coverage (Dwelling) $75,500 Vandalism & Malicious Mischief (Dwelling) $75,500 Deductible Amount Deductible Adjustment - EC, V&MM $250 Surcharges Surcharge % Mobile Home Surcharge +25.0% Credits Credit % Fire Record Credit -5.0% Optional Dry Hydrant Credit -10.0% Sprinklered Risk Credit -12.0% TDP-001 - Wind Exclusion -91.0% Additional Premium Modifications Public Housing Tenant Occupancy of Dwelling Small Mercantile Occupancy of Dwelling Not an FR/SFR Risk Rating Information Construction Type BV Protection Class 10 Previous Applicable Key Rate (already halved) 0.24 Territory 9 Flex Percentage +5.0% Policy Term 1 year Fire Premium Calculation Base Fire Premium (Dwl Table A) $1.250 Amount of Insurance (in 000's) x 75.500 $94.375 (round to three decimals) Low Value Factor (Dwl Table B) x 1.000 $94.375 (round to three decimals) Public Housing Credit Factor x 0.260 $24.538 (round to three decimals) Rate Capping Factor - Year 1 (Dwl Table C-2) x 1.000 $24.538 (round to three decimals) Tenant Occupancy Surcharge (Premium Chart No. 18) + $2.080 $26.618 (round to three decimals) Mobile Home Surcharge Factor x 1.250 $33.273 (round to three decimals) Small Mercantile Occupancy Surcharge + $93.000 (see small mercantile below) $126.273 (round to three decimals) Flex Percent Factor x 1.05 Normal Fire Premium $132.587 (round to three decimals) Fire Record Credit Factor x 0.950 Using Rating Rules Effective 2/1/1999 -13- $125.958 (round to three decimals) Actual Fire Premium (Rounded) $126 Small Mercantile Occupancy Surcharge Small Mercantile Occupancy Charge (Dwl Table A) $0.990 Amount of Insurance (in 000's) x 75.500 $74.745 (round to three decimals) Low Value Factor (Dwl Table B) x 1.000 $74.745 (round to three decimals) Mobile Home Surcharge x 1.250 $93.431 (round to three decimals) Small Mercantile Occupancy Surcharge (Rounded) $93 Credits to Fire Premium Optional Dry Hydrant Credit Actual Fire Premium $126.000 Dry Hydrant Credit Factor x -0.10 -$12.600 (round to three decimals) Dry Hydrant Credit (Rounded) -$13 Sprinklered Risk Credit Actual Fire Premium $126.000 Sprinklered Risk Credit Factor x -0.12 -$15.120 (round to three decimals) Sprinklered Risk Credit (Rounded) -$15 Extended Coverage Premium Calculation Base EC Premium (Dwl Chart No. 1A) $124.800 (use interpolation) FR/SFR Factor x 1.000 $124.800 (round to three decimals) Dwelling EC Territory Multiplier (Dwl EC Territory Multipliers) x 1.798 $224.390 (round to three decimals) Public Housing Credit Factor (EC) x 0.600 $134.634 (round to three decimals) Wind Exclusion Endorsement Factor (TDP-001) x 0.090 $12.117 (round to three decimals) Mobile Home Surcharge Factor x 1.250 $15.146 (round to three decimals) Deductible Adjustment Factor (Ded Adj Schedule) x 1.250 $18.933 (round to three decimals) Flex Percent Factor x 1.05 $19.880 (round to three decimals) Extended Coverage Premium (Rounded) $20 Using Rating Rules Effective 2/1/1999 -14- Vandalism & Malicious Mischief Premium Calculation Base V&MM Premium (V&MM Premium Chart) $8.100 (use interpolation) Mobile Home Surcharge Factor x 1.250 $10.125 (round to three decimals) Deductible Adjustment Factor (Ded Adj Schedule) x 1.250 $12.656 (round to three decimals) Flex Percent Factor x 1.05 $13.289 (round to three decimals) Vandalism & Malicious Mischief Premium (Rounded) $13 Final Policy Premium Premium Amount Actual Fire Premium $126 Credits to Fire Premium -$28 Extended Coverage Premium $20 Vandalism & Malicious Mischief Premium + $13 Total Policy Premium $131 Final Policy Premium Amount $131 Using Rating Rules Effective 2/1/1999 -15- EXAMPLE PREMIUM CALCULATION FOR TEXAS DWELLING COVERAGES Example No. 2 Policy Information Coverage Limits Fire (Dwelling) $75,500 Fire (Personal Property) $15,000 Extended Coverage (Dwelling) $75,500 Extended Coverage (Personal Property) $15,000 Additional Extended Coverage (Personal Property) $15,000 Physical Loss Form (Dwelling) $75,500 Deductible Amount Deductible Adjustment - EC (Dwelling), PLF (Dwelling) $250 Deductible Adjustment - EC (Contents), AEC (Contents) 1% Surcharges Surcharge % Mobile Home Surcharge +25.0% Credits Credit % Fire Record Credit -5.0% Optional Dry Hydrant Credit -10.0% Sprinklered Risk Credit -12.0% TDP-001A - Wind Exclusion -98.0% Additional Premium Modifications Public Housing (Dwelling Only) Tenant Occupancy of Dwelling Small Mercantile Occupancy of Dwelling Not an FR/SFR Risk Rating Information Construction Type BV Protection Class 10 Previous Applicable Key Rate (already halved) 0.24 Territory 9 Flex Percentage +5.0% Policy Term 1 year Fire Premium Calculation Personal Dwelling Property Base Fire Premium (Dwl Table A) $1.250 $1.250 Amount of Insurance (in 000's) x 75.500 x 15.000 $94.375 $18.750 (round to three decimals) Low Value Factor (Dwl Table B) x 1.000 x 1.000 $94.375 $18.750 (round to three decimals) Public Housing Credit Factor (Dwelling Only) x 0.260 x 1.000 $24.538 $18.750 (round to three decimals) Rate Capping Factor - Year 1 (Dwl Table C-2) x 1.000 x 1.000 $24.538 $18.750 (round to three decimals) Tenant Occupancy Surcharge (Premium Chart No. 18) + $2.080 + $2.080 Using Rating Rules Effective 2/1/1999 -16- $26.618 $20.830 (round to three decimals) Mobile Home Surcharge Factor x 1.250 x 1.250 $33.273 $26.038 (round to three decimals) Small Mercantile Occupancy Surcharge + $93.000 + $19.000 (see small mercantile below) $126.273 $45.038 (round to three decimals) Flex Percent Factor x 1.05 x 1.05 Normal Fire Premium $132.587 $47.290 (round to three decimals) Fire Record Credit Factor x 0.950 x 0.950 $125.958 $44.926 (round to three decimals) Actual Fire Premium (Rounded) $126 $45 Small Mercantile Occupancy Surcharge Personal Dwelling Property Small Mercantile Occupancy Charge (Dwl Table A) $0.990 $0.990 Amount of Insurance (in 000's) x 75.500 x 15.000 $74.745 $14.850 (round to three decimals) Low Value Factor (Dwl Table B) x 1.000 x 1.000 $74.745 $14.850 (round to three decimals) Mobile Home Surcharge x 1.250 x 1.250 $93.431 $18.563 (round to three decimals) Small Mercantile Occupancy Surcharge (Rounded) $93 $19 Credits to Fire Premium Personal Dwelling Property Optional Dry Hydrant Credit Actual Fire Premium $126.000 $45.000 Dry Hydrant Credit Factor x -0.10 x -0.10 -$12.600 -$4.500 (round to three decimals) Dry Hydrant Credit (Rounded) -$13 -$5 Sprinklered Risk Credit Actual Fire Premium $126.000 $45.000 Sprinklered Risk Credit Factor x -0.12 x -0.12 -$15.120 -$5.400 (round to three decimals) Sprinklered Risk Credit (Rounded) -$15 -$5 Extended Coverage Premium Calculation Personal Dwelling Property Base EC Premium (Dwl Chart No. 1A) $124.800 $9.000 (use interpolation) FR/SFR Factor x 1.000 x 1.000 $124.800 $9.000 (round to three decimals) Dwl EC Territory Multiplier (Dwl EC Territory Multipliers) x 1.798 x 1.772 $224.390 $15.948 (round to three decimals) Public Housing Credit Factor (Dwelling Only) x 0.600 x 1.000 $134.634 $15.948 (round to three decimals) Wind Exclusion Endorsement Factor (TDP-001A) x 0.020 x 0.020 $2.693 $0.319 (round to three decimals) Mobile Home Surcharge Factor x 1.250 x 1.250 $3.366 $0.399 (round to three decimals) Using Rating Rules Effective 2/1/1999 -17- Deductible Adjustment Factor (Ded Adj Schedule) x 1.250 x 1.000 $4.208 $0.399 (round to three decimals) Flex Percent Factor x 1.05 x 1.05 $4.418 $0.419 (round to three decimals) Extended Coverage Premium (Rounded) $4 $0 Additional Extended Coverage Premium Calculation Base AEC Premium (AEC Premium Chart) $11.000 AEC Territory Multiplier (AEC Premium Chart) x 1.277 $14.047 (round to three decimals) Mobile Home Surcharge Factor x 1.250 $17.559 (round to three decimals) Deductible Adjustment Factor (Ded Adj Schedule) x 1.000 $17.559 (round to three decimals) Flex Percent Factor x 1.05 $18.437 (round to three decimals) Additional Extended Coverage Premium (Rounded) $18 Physical Loss Form Premium Calculation Base PLF Premium (All Risk Premium Chart) $64.400 (use interpolation) PLF Territory Multiplier (All Risk Premium Chart) x 2.164 $139.362 (round to three decimals) Mobile Home Surcharge Factor x 1.250 $174.203 (round to three decimals) Deductible Adjustment Factor (Ded Adj Schedule) x 1.250 $217.754 (round to three decimals) Flex Percent Factor x 1.05 $228.642 (round to three decimals) Physical Loss Form Premium (Rounded) $229 Final Policy Premium Premium Amount Actual Fire Premium (Dwelling) $126 Credits to Fire Premium (Dwelling) -$28 Actual Fire Premium (Personal Property) $45 Credits to Fire Premium (Personal Property) -$10 Extended Coverage Premium (Dwelling) $4 Extended Coverage Premium (Personal Property) $0 Additional Extended Coverage Premium $18 Physical Loss Form Premium + $229 Total Policy Premium $384 Final Policy Premium Amount $384 Using Rating Rules Effective 2/1/1999 -18- TEXAS PERSONAL LINES MACHINE LETTER EXAMPLE OF HO-140 PREMIUM REDUCTION FOR HOMEOWNERS POLICY Assumptions: HO-B Brick Veneer Territory 9 Protection Class 6 Previous Key Rate 0.13 Flex +5% Coverage A (Dwelling) $100,000 Coverage B (Personal Property) 60,000 Deductible Clause 1 250 Deductible Clause 2 250 HO-101 (Replacement Cost) Attached Base Premium $223.000 Protection/Construction Factor x 1.100 $245.300 Amount of Insurance Factor (with increased Coverage B) x 4.886 $1,198.536 Rate Capping Factor x 1.000 Basic Benchmark Premium $1,198.536 Flex Factor x 1.05 Basic Premium $1,258 Deductible Clause 1 (Excluded) + - Deductible Clause 2 (15% of Basic Premium) + 189 HO-101 (5% of Basic Premium) + 63 Total Premium $1,510 Basic Premium Reduction Personal Dwelling Property Dwelling Extended Coverage Premium Chart $165 $35 Dwelling Extended Coverage Territory Multiplier x 1.798 x 1.772 Subtotal $296.670 $62.020 Flex (HO-B Flex) x 1.05 x 1.05 Gross Premium $311.504 $65.121 Dwelling and Contents Combined $376.625 HO-140 (Primary Residence) Factor x 0.98 Premium Reduction of Homeowners Basic Premium $369 Replacement Cost Reduction Gross Premium $311.504 $65.121 Replacement Cost Surcharge x 0.05 x 0.05 Subtotal 15.575 3.256 Dwelling and Contents Combined $18.831 HO-140 (Primary Residence) Factor x 0.98 Premium Reduction of Replacement Cost $18 Homeowners with HO-140 Attached Basic Premium (Basic Premium - Premium Reduction) $889 Deductible Clause 1 (Excluded) + - Deductible Clause 2 (no change) + 189 HO-101 (Replacement Cost Surcharge - Premium Reduction) + 45 Total Premium $1,123 Example based on premiums effective February 1, 1999 -19- TEXAS PERSONAL LINES MACHINE LETTER EXAMPLE OF HO-140 PREMIUM REDUCTION FOR HOMEOWNERS POLICY WITH OPTIONAL LARGE DEDUCTIBLE OF 2.0% Assumptions: HO-B Brick Veneer Territory 9 Protection Class 6 Previous Key Rate 0.13 Flex +5% Coverage A (Dwelling) $100,000 Coverage B (Personal Property) 60,000 Deductible Clause 1 2.0% Deductible Clause 2 2.0% HO-101 (Replacement Cost) Attached Base Premium $223.000 Protection/Construction Factor x 1.100 $245.300 Amount of Insurance Factor (w/ increased Coverage B) x 4.886 $1,198.536 Rate Capping Factor x 1.000 Basic Benchmark Premium $1,198.536 Flex Factor x 1.05 Basic Premium $1,258 Deductible Clause 1 (Excluded) + - Deductible Clause 2 (11% Credit) + (138) HO-101 (5% of Basic Premium) + 63 Total Premium $1,183 Basic Premium Reduction Personal Dwelling Property Dwelling Extended Coverage Premium Chart $165 $35 Dwelling Extended Coverage Territory Multiplier x 1.798 x 1.772 Subtotal $296.670 $62.020 Flex (HO-B Flex) x 1.05 x 1.05 Gross Premium $311.504 $65.121 Dwelling and Contents Combined $376.625 HO-140 (Primary Residence) Factor x 0.98 Premium Reduction of Homeowners Basic Premium $369 Replacement Cost Reduction Gross Premium $311.504 $65.121 Replacement Cost Surcharge x 0.05 x 0.05 Subtotal 15.575 3.256 Dwelling and Contents Combined $18.831 HO-140 (Primary Residence) Factor x 0.98 Premium Reduction of Replacement Cost $18 Homeowners with HO-140 Attached Basic Premium (Basic Premium - Premium Reduction) $889 Deductible Clause 1 (excluded) + - Deductible Clause 2 (no change) + (138) HO-101 (Replacement Cost Surcharge - Premium Reduction) + 45 Total Premium $796 Example based on premiums effective February 1, 1999 -20- TEXAS PERSONAL LINES MACHINE LETTER EXAMPLE OF HO-140B PREMIUM REDUCTION FOR HO-BT IN A DWELLING Assumptions: HO-BT Dwelling Brick Veneer Territory 9 Flex -5% Previous Key Rate 0.13 Protection Class 6 Coverage B (Personal Property) $20,000 Deductible Clause 3 $100 HO-101 (Replacement Cost) Attached Tenant Base Rate $38.000 Protection/Construction Factor x 1.100 $41.800 Amount of Insurance Factor x 1.530 $63.954 Rate Capping Factor x 1.000 Basic Benchmark Premium $63.954 Flex x 0.95 $60.756 Basic Premium (Rounded) $61 Deductible Clause 3 (18% of Basic Premium) + 11 HO-101 (15% of Basic Premium) + 9 Total Premium $81 Basic Premium Reduction Extended Coverage Premium Chart 1B $12 Contents Extended Coverage Territory Multiplier x 1.772 Subtotal $21.264 Flex (HO-BT Flex) x 0.95 Gross Premium $20.201 HO-140B (Primary Residence) Factor x 0.96 Premium Reduction of Homeowners Basic Premium $19 Deductible Clause 3 Reduction Gross Premium $20.201 Deductible Adjustment (Dwelling Section) x 0.08 Subtotal $1.616 HO-140B (Primary Residence) Factor x 0.96 Premium Reduction of Deductible Clause 3 $2 Replacement Cost Reduction Gross Premium $20.201 Replacement Cost Surcharge (End No. HO-101) x 0.15 Subtotal $3.030 HO-140B (Primary Residence) Factor x 0.96 Premium Reduction of Replacement Cost $3 Homeowners-Tenant with HO-140B Attached Basic Premium (Basic Premium - Premium Reduction) $42 Deductible Clause 3 (Deductible Clause 3 - Premium Reduction) + 9 HO-101 (Replacement Cost Surcharge - Premium Reduction) + 6 Total Premium $57 Example based on premiums effective February 1, 1999 -21- TEXAS PERSONAL LINES MACHINE LETTER EXAMPLE OF HO-140B PREMIUM REDUCTION FOR HO-BT IN AN APARTMENT Assumptions: HO-BT Apartment Brick Veneer Territory 9 Flex +20% Previous Key Rate 0.13 Protection Class 6 Coverage B (Personal Property) $25,000 Deductible Clause 3 $100 HO-101 (Replacement Cost) Attached Tenant Base Rate $54.000 Protection/Construction Factor x 1.100 $59.400 Amount of Insurance Factor x 1.910 $113.454 Rate Capping Factor x 1.000 Basic Benchmark Premium $113.454 Flex x 1.20 Basic Benchmark Premium $136.145 Basic Premium $136 Deductible Clause 3 (20% of Basic Premium) + 27 HO-101 (15% of Basic Premium) + 20 Total Premium $183 Basic Premium Reduction Extended Coverage Rate Chart (See Note Below) 0.578 50% of Building Rate x 0.50 Subtotal 0.289 Amount of Coverage / 100 x 250 Subtotal $72.250 Flex (HO-BT Flex) x 1.20 Gross Premium $86.700 HO-140B (Primary Residence) Factor x 0.96 Premium Reduction of Homeowners Basic Premium $83 Deductible Clause 3 Reduction Deductible reduction does not apply to apartments, condominiums or other buildings. Replacement Cost Reduction Gross Premium $86.700 Replacement Cost Surcharge (End No. HO-101) x 0.15 Subtotal $13.005 HO-140B (Primary Residence) Factor x 0.96 Premium Reduction of Replacement Cost $12 Homeowners-Tenant with HO-140B Attached Basic Premium (Basic Premium - Premium Reduction) $53 Deductible Clause 3 + 27 HO-101 (Replacement Cost Surcharge - Premium Reduction) + 8 Total Premium $88 Example based on premiums effective February 1, 1999 NOTE: 1. For Apartments and Condominiums: a. If EC construction is other than WR or SWR then use 50% of the building rate (see TWIA Manual General Index). The building rate is found in Rate Table A of the TWIA Manual. Use the 80% coinsurance rate. b. If EC construction is WR or SWR then use the contents rate (see TWIA Manual General Index). The contents rate is found in Rate Table C of the TWIA Manual. Use the 80% coinsurance rate. 2. For Other Buildings: Determine the rate table to be used from the TWIA General Index. -22- TEXAS PERSONAL LINES MACHINE LETTER EXAMPLE OF HO-140 PREMIUM REDUCTION FOR HO-CON Assumptions: HO-CON-B Condo Brick Veneer Territory 9 Flex -10% Previous Key Rate Protection Class 6 Coverage B (Personal Property) $50,000 Deductible Clause 3 $250 HO-101 (Replacement Cost) Attached Tenant Base Rate $51.000 Protection/Construction Factor x 1.100 $56.100 Amount of Insurance Factor x 3.850 $215.985 Rate Capping Factor x 1.000 Basic Benchmark Premium $215.985 Flex x 0.90 $194.387 Basic Premium (Rounded) $194 Deductible Clause 3 (5% of Basic Premium) + 10 HO-101 (15% of Basic Premium) + 29 Total Premium $233 Basic Premium Reduction Extended Coverage Rate Chart (See Note Below) 0.578 50% of Building Rate x 0.50 Subtotal 0.289 Amount of Coverage / 100 x 500 Subtotal $144.500 Flex (HO-CON-B Flex) x 0.90 Gross Premium $130.050 HO-140 (Primary Residence) Factor x 0.96 Premium Reduction of Homeowners Basic Premium $125 Deductible Clause 3 Reduction Deductible reduction does not apply to apartments, condominiums or other buildings. Replacement Cost Reduction Gross Premium $130.050 Replacement Cost Surcharge (End No. HO-101) x 0.15 Subtotal $19.508 HO-140 (Primary Residence) Factor x 0.96 Premium Reduction of Replacement Cost $19 Homeowners-Condo with HO-140 Attached Basic Premium (Basic Premium - Premium Reduction) $69 Deductible Clause 3 + 10 HO-101 (Replacement Cost Surcharge - Premium Reduction) + 10 Total Premium $89 Example based on premiums effective February 1, 1999 NOTE: 1. For Apartments and Condominiums: a. If EC construction is other than WR or SWR then use 50% of the building rate (see TWIA Manual General Index). The building rate is found in Rate Table A of the TWIA Manual. Use the 80% coinsurance rate. b. If EC construction is WR or SWR then use the contents rate (see TWIA Manual General Index). The contents rate is found in Rate Table C of the TWIA Manual. Use the 80% coinsurance rate. 2. For Other Buildings: Determine the rate table to be used from the TWIA General Index. -23- TEXAS PERSONAL LINES MACHINE LETTER Homeowners HOMEOWNERS - TABLE A Annual Base Premiums - Deductibles No. 1 and No. 2 at 1% of Coverage A (Minimum Deductible $100) Territory Form HO-A Form HO-B Form HO-C 1 $102 $131 $149 2 122 156 182 3 134 172 201 4 104 134 155 5 80 102 120 6 64 82 94 7 58 74 86 8 103 131 150 9 174 223 253 10 101 129 146 11 89 115 131 12 78 100 117 13 62 80 92 14 78 101 117 15C 90 115 133 15N 166 222 237 16C 114 147 171 16N 114 152 165 17 118 151 175 18 120 161 173 19C 127 163 189 19N 142 190 204 20 149 200 216 -24- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners TENANTS - TABLE A TEXAS TENANTS FORMS HO-BT AND HO-CT OR CONDOMINIUM FORMS HO-CON-B AND HO-CON-C Annual Base Premiums - Deductible No. 3 at 1% of Coverage B (Minimum Deductible $100) Dwellings & Townhouses Apartments ** Other Buildings Condominiums Territory Form B Form C Form B Form C Form B Form C Form B Form C 1 $47 $71 $69 $104 $78 $114 $63 $96 2 39 59 54 80 59 88 52 79 3 39 59 54 80 59 87 53 79 4 29 44 40 59 43 65 39 58 5 50 75 68 102 75 112 68 101 6 35 51 46 70 51 77 46 69 7 45 67 59 90 67 100 59 89 8 33 49 47 71 52 78 44 66 9 38 58 54 82 60 91 51 77 10 33 49 46 70 51 78 43 65 11 39 59 58 87 64 96 52 80 12 34 52 47 72 52 78 47 71 13 29 44 39 59 43 65 38 58 14 38 56 51 76 56 84 50 75 15C 34 51 47 71 51 78 46 70 15N 33 49 50 75 56 83 48 71 16C 32 48 43 66 48 72 42 65 16N 29 43 45 68 50 75 42 64 17 41 61 56 83 61 92 56 82 18 41 59 62 92 68 102 58 87 19C 36 54 49 73 54 80 48 72 19N 32 48 50 76 55 82 47 71 20 29 42 43 66 48 72 40 61 ** Also applies to HO-BT and HO-CT Policies written on Tenant Occupied Condominiums rated under the Condo- minium Schedule. -25- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 5 Residential Glass Unscheduled Residence Glass Coverage may be provided by attaching HO-105 at a one year premium of $5.37, each premises to be charged separately. Scheduled Glass - Show the type, size, ornamentation and location in building and value for each item of glass. The premium per $100 of insurance is $5.37. PREMIUM CHART NO. 6 Jewelry, Watches and Furs - Increased Limits When it is desired to increase the limit for jewelry, watches and furs, attach HO-110 and charge the one year rate per $100 of insurance, regardless of deductibles, shown below: Form HO-A $1.07 HO-B & HO-BT 1.07 HO-C & HO-CT 2.14 HO-CON-B 1.07 HO-CON-C 2.14 PREMIUM CHART NO. 7 Additional Limit on Business Personal Property Business Personal Property may be increased from $2,500 at a one year rate of $0.40 per $100 of insurance by attaching Endorsement HO-111. PREMIUM CHART NO. 8 Money/Bank Cards, and Bullion/Valuable Papers - Increased Limits Additional limits for these items may be obtained at a one year premium per $100 of: Money/Bankcards Bullion/Valuable Papers Form (Endorsement HO-112) (Endorsement HO-113) HO-A $1.07 $1.07 HO-B & HO-BT 2.14 1.07 HO-C & HO-CT 2.14 2.14 HO-CON-B 2.14 1.07 HO-CON-C 2.14 2.14 PREMIUM CHART NO. 9 Radio and Television Antenna Specific coverage for television and radio antennas, including satellite dishes and lead-in wiring, may be provided by attaching endorsement HO-120 at a one year premium of $3.57 per $100 of insurance. -26- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 10 Greenhouses Windstorm, hurricane and hail coverage for greenhouses may be provided by attaching Endorsement HO-121 at a one year premium per $100 of: Territory 2,3,4 Territory 5,6,7, Territory 15N, Territory 1,8,9, 16C,17,19C 12,13,14,15C 16N, 18, 19N, 10,11 20 Plain Glass $9.46 $7.29 $9.61 $7.04 All Other 0.21 0.16 0.73 0.45 PREMIUM CHART NO. 11 Cloth Awnings Windstorm, hurricane and hail coverage for cloth awnings may be provided by attaching Endorsement HO-122 at a one year premium per $100 of: Territory 2,3,4 Territory 5,6,7, Territory 15N, Territory 1,8,9, 16C,17,19C 12,13,14,15C 16N, 18, 19N, 10,11 20 $3.99 $3.08 $9.69 $9.41 PREMIUM CHART NO. 12 Physicians, Surgeons and Dentists Outside Coverage Attach Endorsement HO-125 and charge the following one year premium per $100: Premium per $100 Loss Deductible Form HO-B, Form HO-C, Clause HO-BT, HO-CT, No. 2 or 3 HO-CON-B HO-CON-C $100 or $250 Ded. $1.07 $1.07 1/2 of 1% Ded. 1.07 1.07 1% Ded. 1.07 1.07 $500 Flat 1.07 1.07 $1,000 Flat 1.07 1.07 Greater than 1% 1.07 1.07 -27- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 13 (Form HO-A only) Additional Extended Coverage Endorsement Coverage A Coverage B Premium Coverage A Coverage B Premium $5,000 $2,000 $3 $33,000 $13,200 $21 6,000 2,400 4 34,000 13,600 22 7,000 2,800 5 35,000 14,000 23 8,000 3,200 5 36,000 14,400 23 9,000 3,600 6 37,000 14,800 24 10,000 4,000 6 38,000 15,200 24 11,000 4,400 7 39,000 15,600 25 12,000 4,800 8 40,000 16,000 26 13,000 5,200 8 41,000 16,400 26 14,000 5,600 9 42,000 16,800 27 15,000 6,000 10 43,000 17,200 28 16,000 6,400 10 44,000 17,600 28 17,000 6,800 11 45,000 18,000 29 18,000 7,200 12 46,000 18,400 30 19,000 7,600 12 47,000 18,800 30 20,000 8,000 13 48,000 19,200 31 21,000 8,400 14 49,000 19,600 32 22,000 8,800 14 50,000 20,000 32 23,000 9,200 15 55,000 22,000 35 24,000 9,600 15 60,000 24,000 39 25,000 10,000 16 65,000 26,000 42 26,000 10,400 17 70,000 28,000 45 27,000 10,800 17 75,000 30,000 48 28,000 11,200 18 80,000 32,000 52 29,000 11,600 19 85,000 34,000 55 30,000 12,000 19 90,000 36,000 58 31,000 12,400 20 95,000 38,000 61 32,000 12,800 21 100,000 40,000 64 Each Add'l - Add $5,000 Coverage A $2.30 $1,000 Coverage B 0.46 Each Decrease - Subtract $1,000 Coverage B $0.46 * If Coverage A is increased, apply the $2.30 rate per each $5,000 increase of Coverage A as well as the $0.46 rate per each $1,000 for the consequent increase of Coverage B, where Coverage B is at 40% of Coverage A. -28- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 14 Other Structures on the Premises - Additional Amount Other structures on the premises are covered by the basic policy in an amount equal to 10% of the limit of liability for Coverage A (Dwelling). The 10% extension applicable to such outbuildings may be increased at the one year premium per $1,000 shown in the table below, regardless of deductible. Type Construction Territory 2,3,4, Territory 5,6,7, Territory 15N, Territory 1,8,9, (Residence 16C,17,19C 12,13,14,15C 16N, 18, 19N, 10,11 Premises) 20 Brick $4.99 $3.81 $7.54 $3.69 Brick Veneer 4.99 3.81 7.54 4.61 Asbestos & Stucco 6.25 4.78 10.06 4.61 Frame 6.25 4.78 11.32 4.61 PREMIUM CHART NO. 20 Personal Injury Coverage When it is desired to attach personal injury coverage to a Homeowners Policy, attach Endorsement HO-201 and charge the following one year additional premium: Liability Premium $25,000 $7.51 50,000 8.59 100,000 8.59 200,000 9.66 250,000 10.73 300,000 10.73 500,000 11.81 1,000,000 13.96 To eliminate exclusion Number 3 on Form HO-201, increase the above premiums by 50%. -29- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 21 Office, Private School or Studio 1. Residence Premises - When such occupancy is maintained in the residence premises and Endorsement HO-205 is attached, charge an additional premium shown below for Coverage C (Personal Liability). 2. Additional Residence - When such occupancy is located in an additional residence occupied by the Insured, Coverage C (Personal Liability) may be provided by attachment of HO-205 at the additional premium determined from Column "Each Additional Dwelling Occupied by Insured" in Premium Chart 28 and additional premium shown below: Limit of "Each Additional Dwelling Liability Occupied by Insured" $25,000 $5.37 50,000 5.37 100,000 6.44 200,000 6.44 250,000 7.51 300,000 7.51 500,000 12.88 1,000,000 13.96 If Medical Payments to others are to be included, add the following: Medical Payments to Others One Family Two Family $500 $2.14 $3.22 1,000 4.30 5.37 2,000 6.44 8.59 3,000 8.59 10.73 4,000 9.66 12.88 5,000 10.73 15.03 -30- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 22 Farmer's Personal Liability If the insured resides on non-farm premises and operates a farm, with or without a residence, at a separate location, use "initial farm premises" for the farm, including personal activities of the Insured, and other residence premises shall be classified and rated as "Additional Residence Occupied by the Insured". 1. Initial Farm Premises Limit of Liability $500 $1,000 $2,000 $3,000 $4,000 $5,000 $25,000 $6.44 $7.51 $10.73 $10.73 $12.88 $13.96 50,000 7.51 9.66 10.73 12.88 13.96 16.10 100,000 9.66 10.73 12.88 15.03 16.10 18.25 200,000 11.81 12.88 16.10 17.17 19.33 20.40 250,000 12.88 15.03 17.17 18.25 20.40 21.47 300,000 13.96 16.10 18.25 19.33 21.47 22.54 500,000 35.43 36.50 39.72 40.80 42.94 44.01 1,000,000 56.90 59.04 61.18 62.27 64.41 65.48 Each Additional Residence 2. Occupied by the Insured Limit of Liability $500 $1,000 $2,000 $3,000 $4,000 $5,000 $25,000 $3.22 $4.30 $5.37 $6.44 $6.44 $7.51 50,000 4.30 5.37 5.37 6.44 7.51 7.51 100,000 4.30 5.37 6.44 6.44 7.51 8.59 200,000 5.37 5.37 6.44 7.51 7.51 8.59 250,000 5.37 6.44 6.44 7.51 8.59 8.59 300,000 5.37 6.44 7.51 7.51 8.59 8.59 500,000 5.37 6.44 7.51 8.59 8.59 9.66 1,000,000 6.44 7.51 8.59 8.59 9.66 10.73 Each Additional Farm (with buildings) 3. Occupied or Rented by the Insured to Others Limit of Liability $500 $1,000 $2,000 $3,000 $4,000 $5,000 $25,000 $5.37 $6.44 $7.51 $7.51 $8.59 $9.66 50,000 6.44 7.51 7.51 8.59 9.66 9.66 100,000 6.44 7.51 8.59 9.66 9.66 10.73 200,000 7.51 8.59 9.66 9.66 10.73 10.73 250,000 8.59 8.59 9.66 10.73 10.73 10.73 300,000 8.59 9.66 10.73 10.73 10.73 10.73 500,000 9.66 10.73 10.73 10.73 10.73 11.81 1,000,000 9.66 10.73 10.73 11.81 11.81 12.88 -31- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 22 (cont.) Farmer's Personal Liability 4. Total Acreage Charge based on Total Acreage at all Locations under Column (1), Column (3) Farm Land (without buildings) Rented to Others* (First 160 acres - no charge.) 161 to 241 to 321 to 401 to 501 to 1,001 to **2,001 to 240 320 400 500 1,000 2,000 10,000 $1.07 $2.14 $3.22 $4.30 $7.51 $9.66 $0.18 1.07 2.14 3.22 4.30 8.59 10.73 0.21 1.07 2.14 3.22 4.30 9.66 10.73 0.23 1.07 3.22 4.30 5.37 10.73 12.88 0.25 1.07 3.22 4.30 5.37 10.73 12.88 0.28 1.07 3.22 4.30 6.44 10.73 13.96 0.29 2.14 3.22 5.37 6.44 12.88 16.10 0.42 2.14 3.22 5.37 7.51 13.96 17.17 0.46 **Add to the premium developed for acreage from 1,001 to 2,000 acres an additional charge determined by applying the charges shown in this column for each 100 acres in excess of 2,000 acres. For total acreage in excess of 10,000 refer to company. * Farm Land Rented to Others - use HO-210 and show total acreage, including that occupied by the insured. Premium Chart No. 28 is used to determine additional premium for dwelling rented to others. -32- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 22A Custom Farming (per $100) (Receipts) Medical 25M 50M 100M 200M 300M 500M 1,000M $500 $0.67 $0.78 $0.87 $1.02 $1.16 $1.21 $1.57 1,000 0.72 0.84 0.92 1.07 1.20 1.27 1.59 2,000 0.77 0.90 0.98 1.14 1.27 1.33 1.61 3,000 0.82 0.94 1.02 1.17 1.31 1.37 1.64 4,000 0.86 0.98 1.06 1.20 1.35 1.41 1.65 5,000 0.90 1.02 1.11 1.24 1.39 1.45 1.69 Minimum Premiums Medical 25M 50M 100M 200M 300M 500M 1,000M $500 $6 $7 $8 $9 $10 $12 $14 1,000 7 8 9 10 11 12 14 2,000 8 9 10 11 12 12 14 3,000 9 10 11 12 12 12 14 4,000 10 11 12 13 13 13 14 5,000 11 12 13 14 14 14 14 PREMIUM CHART NO. 23 One Year Rates Farm Employers Liability Rates for $100 Payroll Limit of Liability $500 Med. $1,000 Med. $2,000 Med. $3,000 Med. $4,000 Med. $5,000 Med. $25,000 $1.47 $1.57 $1.61 $1.64 $1.66 $1.69 50,000 1.72 1.81 1.84 1.89 1.91 1.95 100,000 1.90 1.99 2.03 2.06 2.10 2.12 200,000 2.21 2.29 2.33 2.37 2.40 2.43 250,000 2.35 2.44 2.48 2.52 2.55 2.58 300,000 2.49 2.59 2.63 2.66 2.69 2.72 500,000 2.78 2.88 2.90 2.94 2.97 3.01 1,000,000 3.27 3.36 3.39 3.43 3.46 3.49 PREMIUM CHART NO. 24 Minimum Premiums Farm Employers Liability Limit of Liability $500 Med. $1,000 Med. $2,000 Med. $3,000 Med. $4,000 Med. $5,000 Med. $25,000 $29 $31 $36 $40 $42 $45 50,000 34 36 40 45 47 49 100,000 37 39 44 48 51 53 200,000 43 45 50 54 56 59 250,000 46 48 53 57 59 62 300,000 48 51 55 60 62 64 500,000 54 56 61 65 68 70 1,000,000 63 66 71 75 77 79 -33- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 25 Animal Collision Coverage 1 But Not More Than 100 ......................................... $9.66 101 But Not More Than 250 ......................................... 18.25 251 But Not More Than 500 ......................................... 27.91 501 But Not More Than 1,000 ......................................... 36.50 1,001 or More, Refer to Company PREMIUM CHART NO. 26 Watercraft Watercraft Liability One-Year Additional Premiums, with $500 Medical Payments to Others. Watercraft not covered within the terms of Section II may be covered by attaching HO-215 at the additional premiums shown below: Outboard Motor Boats Exceeding 25 Horsepower When two or more outboard motors are regularly used together with one watercraft, total horsepower of all such motors shall be accumulated for rating purposes. Horsepower Increased Medical Payments to Others ** Limit of 26 But Less 50 and Limit of 26 But Less 50 and Liability * Than 50 Over Liability Than 50 Over $25,000 $5.37 $9.66 $1,000 $3.22 $4.30 50,000 6.44 10.73 2,000 5.37 7.51 100,000 7.51 10.73 3,000 6.44 9.66 200,000 8.59 12.88 4,000 7.51 10.73 250,000 8.59 12.88 5,000 8.59 12.88 300,000 9.66 13.96 500,000 9.66 16.10 1,000,000 10.73 17.17 * For higher limits, submit for rating. ** Limits of Liability on Personal Liability coverage and Medical Payments to Others must be the same as limits in the basic policy. For boats not described in the Premium Chart above, except houseboats, coverage is not available under the Homeowners Policies. Houseboats, submit for rating. -34- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 26 (cont.) Watercraft Inboard, Inboard-Outboard Motor Boats Exceeding 50 Horsepower, and Sailboats Sailboats equipped with auxiliary power are classed as Motor Boats. Sailboats Speed Under 16 MPH 16 to 30 MPH, Incl. Over 30 MPH No. Aux. Overall Under 26 to Over Under 26 to Over Under 26 to 26 to Length 26 ft. 40 ft. 40 ft. 26 ft. 40 ft. 40 ft. 26 ft. 40 ft. 40 ft. Limit of Liability * $25,000 $10.73 $28.98 $55.82 $23.61 $46.16 $84.81 $55.82 $84.81 $23.61 50,000 11.81 32.20 63.34 25.77 51.53 96.61 63.34 96.61 25.77 100,000 13.96 35.43 70.85 28.98 56.90 106.28 70.85 106.28 28.98 200,000 15.03 40.80 79.44 32.20 64.41 120.23 79.44 120.23 32.20 250,000 16.10 44.01 84.81 34.35 68.70 127.75 84.81 127.75 34.35 300,000 17.17 46.16 90.17 36.50 73.00 135.26 90.17 135.26 36.50 500,000 19.33 51.53 98.76 39.72 79.44 149.22 98.76 149.22 39.72 1,000,000 21.47 54.75 108.42 44.01 86.95 163.17 108.42 163.17 44.01 Increased Medical Payments to Others ** $1,000 $2.14 $6.44 $10.73 $5.37 $9.66 $17.17 $10.73 $17.17 $5.37 2,000 4.30 9.66 18.25 7.51 13.96 27.91 18.25 27.91 7.51 3,000 4.30 10.73 22.54 9.66 18.25 34.35 22.54 34.35 9.66 4,000 5.37 12.88 27.91 10.73 22.54 40.80 27.91 40.80 10.73 5,000 6.44 16.10 32.20 12.88 25.77 48.31 32.20 48.31 12.88 * For higher limits, submit for rating. ** Limits of Liability on Personal Liability coverage and Medical Payments to Others must be the same as limits in the basic policy. For boats not described in the Premium Chart above, except houseboats, coverage is not available under the Homeowners Policies, Houseboats, submit for rating. -35- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 27 Business Pursuits The coverages on Personal Liability and Medical Payments to Others may be extended by endorsement to cover business pursuits of eligible Insureds listed below. This coverage does not apply to businesses of which the Insured is sole owner or in which he is a partner, nor to bodily injury or to sickness, disease or death of any fellow employee of the Insured. The business classifications with the premium group applicable thereto are set forth below: Premium Groups A Clerical Office Employees - defined as those employees whose duties are confined to keeping the books or records, conducting correspondence, or who are engaged wholly in office work where such books or records are kept or where such correspondence is conducted, having no other duty of any nature in or about the employer's premises. This classification applies only to persons who are employed exclusively in separate buildings or on separate floors or buildings or in departments on such floors which are separated from all other work places of the employer by structural partitions and within which no work is performed other than clerical office duties as defined above. A Salesmen, Collectors or Messengers - no installation, demonstration or servicing operations. B Salesmen, Collectors or Messengers - including installation, demonstration or servicing operations. C Teachers - athletic, laboratory, manual training, physical training and swimming instructors, excluding liability for corporal punishment of pupils. D Teachers - not otherwise classified, excluding liability for corporal punishment of pupils. E Teachers - liability for corporal punishment of pupils. (Premium for this coverage must be added to premium for above classification C or D). Occupations not otherwise classified - submit for rating. Business Pursuits Additional One-Year Premiums Liability Limit (Premium Groups) in Policy A B C D E $25,000 $1.07 $2.14 $3.22 $1.07 $2.14 50,000 1.07 2.14 4.30 2.14 3.22 100,000 1.07 2.14 4.30 2.14 3.22 200,000 1.07 3.22 4.30 2.14 3.22 250,000 1.07 3.22 5.37 2.14 3.22 300,000 1.07 3.22 5.37 2.14 4.30 500,000 2.14 3.22 6.44 2.14 4.30 1,000,000 2.14 3.22 6.44 3.22 4.30 Medical Payments to Others $500 $1.07 $2.14 $3.22 $1.07 1,000 1.07 2.14 4.30 2.14 2,000 2.14 3.22 6.44 2.14 3,000 2.14 4.30 7.51 3.22 4,000 2.14 4.30 8.59 3.22 5,000 2.14 5.37 9.66 4.30 NOTE: Medical Payments to Others (if included) and Personal Liability Limits in connection with business pursuit must be the same limits as the basic policy. -36- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 28 Additional Premiums for Increased Limits of Liability & Medical Payments to Others Main Dwellings & Additional Dwellings One-Year Additional Premiums Forms HO-A, HO-B and HO-C and Tenants Forms HO-BT and HO-CT and Forms HO-CON-B and HO-CON-C Medical Payments to Others Liability Main Dwelling Each Additional Dwelling Occupied by Insured Limit $500 $1,000 $2,000 $3,000 $4,000 $5,000 $500 $1,000 $2,000 $3,000 $4,000 $5,000 $25,000 $0.00 $2.14 $4.30 $6.44 $7.51 $9.66 $3.22 $4.30 $5.37 $6.44 $6.44 $7.51 50,000 1.07 3.22 5.37 7.51 8.59 10.73 4.30 5.37 5.37 6.44 7.51 7.51 100,000 2.14 4.30 6.44 7.51 9.66 10.73 4.30 5.37 6.44 6.44 7.51 8.59 200,000 4.30 6.44 8.59 9.66 10.73 11.81 5.37 5.37 6.44 7.51 7.51 8.59 250,000 5.37 7.51 9.66 10.73 11.81 12.88 5.37 6.44 6.44 7.51 8.59 8.59 300,000 5.37 7.51 9.66 10.73 11.81 13.96 5.37 6.44 7.51 7.51 8.59 8.59 500,000 16.10 19.33 21.47 22.54 23.61 25.77 5.37 6.44 7.51 8.59 8.59 9.66 1,000,000 44.01 46.16 48.31 50.45 51.53 53.67 6.44 7.51 8.59 8.59 9.66 10.73 Each Residential Premises Rented to Others ** If Medical Payment is to be included, add the following charges: Liability One Two Medical One Two Limit Family Family Limit Family Family $25,000 $3.22 $6.44 $500 $2.14 $2.14 50,000 4.30 7.51 1,000 3.22 3.22 100,000 4.30 7.51 2,000 4.30 4.30 200,000 4.30 8.59 3,000 5.37 5.37 250,000 5.37 9.66 4,000 5.37 5.37 300,000 5.37 9.66 5,000 6.44 6.44 500,000 6.44 10.73 1,000,000 6.44 10.73 ** Medical Payments to others coverage for dwellings rented to others is not contemplated in the premiums shown above. -37- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 35 Additional Insured When Section II coverage is to be provided for an occupant of the residence premises, attach HO-301 and charge the following additional premium. Limit of Liability $500 $1,000 $2,000 $3,000 $4,000 $5,000 $25,000 $3.22 $4.30 $4.30 $5.37 $5.37 $6.44 50,000 4.30 4.30 5.37 5.37 6.44 6.44 100,000 4.30 5.37 5.37 6.44 6.44 7.51 200,000 4.30 5.37 6.44 6.44 7.51 7.51 250,000 5.37 5.37 6.44 6.44 7.51 7.51 300,000 5.37 5.37 6.44 7.51 7.51 7.51 500,000 5.37 6.44 7.51 7.51 7.51 8.59 1,000,000 6.44 6.44 7.51 7.51 8.59 8.59 -38- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Homeowners PREMIUM CHART NO. 36 Personal Computer Coverage The additional premium for this endorsement shall be $6.13 per $1,000 of insurance. PREMIUM CHART NO. 37 Unit Owners Outbuildings and Other Structures Coverage Endorsement HO-180 - When the policy is extended to cover outbuildings and/or other structures owned solely by the insured and located on the premises of the condominium complex, the additional premium shall be $10.73 per $1,000 of insurance applying separately to each outbuilding and/or other structure. PREMIUM CHART NO. 38 Condominium Loss Assessment Coverage Limits of Liability Premium Charge First $1,000 $5.37 Next $4,000 3.22 Next $5,000 2.14 Each add'l $5,000 (Up to $50,000) 1.07 PREMIUM CHART NO. 39 Tenants Single Entrance to Building Surcharge For use with Texas Tenant Forms HO-BT and HO-CT, or Condominium Forms HO-CON-B and HO-CON-C. Add the following surcharge if single entrance to building is used by more than four families: Coverage B Amount of Insurance Premium Charge Less than $10,000 $9.49 Greater than or equal to $10,000 16.13 -39- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Dwelling DWELLING - TABLE A 1-Year Base Fire Rates for Buildings or Contents per $1,000 of Coverage Type of Construction Protection Asbestos Clad Class Brick Brick Veneer & Stucco Frame 1 0.33 0.39 0.86 1.28 2 0.33 0.39 0.86 1.28 3 0.45 0.53 1.18 1.74 4 0.52 0.62 1.37 2.02 5 0.54 0.65 1.42 2.11 6 0.65 0.78 1.74 2.56 7 0.75 0.89 1.99 2.93 8 0.87 1.03 2.29 3.40 9 0.97 1.11 2.50 3.89 10 1.10 1.25 2.81 4.38 * Small Mercantile Occupancy Charge: $0.99 per $1,000 of coverage. ** Cities and towns Fire Record Credit or Charge will be applied to the final dwelling fire base premium. -40- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER DWELLING EXTENDED COVERAGE TERRITORY MULTIPLIERS Territory Dwelling Type Buildings Contents Territory Dwelling Type Buildings Contents 1 Frame & Asbestos/Stu 1.187 1.215 13 Frame & Asbestos/Stuc 0.863 0.863 Brick Veneer 1.218 1.171 Brick Veneer 0.863 0.863 Brick 1.012 0.990 Brick 0.863 0.863 2 Frame & Asbestos/Stu 1.488 1.488 14 Frame & Asbestos/Stuc 0.906 0.906 Brick Veneer 1.488 1.488 Brick Veneer 0.906 0.906 Brick 1.488 1.488 Brick 0.906 0.906 3 Frame & Asbestos/Stu 1.933 1.933 15C Frame & Asbestos/Stuc 1.131 1.131 Brick Veneer 1.933 1.933 Brick Veneer 1.131 1.131 Brick 1.933 1.933 Brick 1.131 1.131 4 Frame & Asbestos/Stu 1.232 1.232 15N Frame & Asbestos/Stuc 3.283 3.297 Brick Veneer 1.232 1.232 Brick Veneer 3.326 3.230 Brick 1.232 1.232 Brick 3.326 3.230 5 Frame & Asbestos/Stu 0.886 0.886 16C Frame & Asbestos/Stuc 1.859 1.859 Brick Veneer 0.886 0.886 Brick Veneer 1.859 1.859 Brick 0.886 0.886 Brick 1.859 1.859 6 Frame & Asbestos/Stu 0.731 0.731 16N Frame & Asbestos/Stuc 2.061 2.069 Brick Veneer 0.731 0.731 Brick Veneer 2.088 2.028 Brick 0.731 0.731 Brick 2.088 2.028 7 Frame & Asbestos/Stu 0.705 0.705 17 Frame & Asbestos/Stuc 1.442 1.442 Brick Veneer 0.705 0.705 Brick Veneer 1.442 1.442 Brick 0.705 0.705 Brick 1.442 1.442 8 Frame & Asbestos/Stu 1.723 1.764 18 Frame & Asbestos/Stuc 2.243 2.252 Brick Veneer 1.798 1.772 Brick Veneer 2.273 2.206 Brick 1.494 1.458 Brick 2.273 2.206 9 Frame & Asbestos/Stu 1.723 1.764 19C Frame & Asbestos/Stuc 1.979 1.979 Brick Veneer 1.798 1.772 Brick Veneer 1.979 1.979 Brick 1.494 1.458 Brick 1.979 1.979 10 Frame & Asbestos/Stu 1.723 1.764 19N Frame & Asbestos/Stuc 2.682 2.693 Brick Veneer 1.798 1.772 Brick Veneer 2.717 2.638 Brick 1.494 1.458 Brick 2.717 2.638 11 Frame & Asbestos/Stu 1.122 1.149 20 Frame & Asbestos/Stuc 2.686 2.697 Brick Veneer 1.152 1.106 Brick Veneer 2.721 2.641 Brick 0.957 0.935 Brick 2.721 2.641 12 Frame & Asbestos/Stu 1.138 1.138 Brick Veneer 1.138 1.138 Brick 1.138 1.138 -41- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Dwelling ADDITIONAL EXTENDED COVERAGE PREMIUM CHART Additional Extended Coverage* AEC Territory Amount of Insurance Base Premiums Territory Multipliers $1,000 $1 Territory 5,6,7, 0.821 1,500 1 12,13,14,15C 2,000 2 2,500 2 3,000 2 Territory 2,3,4, 1.399 3,500 3 16C,17,19C 4,000 3 5,000 4 6,000 5 Territory 15N,16N, 0.946 7,000 5 18,19N,20 7,500 6 8,000 6 9,000 7 Territory 1,8,9, 1.277 10,000 8 10, 11 11,000 8 12,000 9 13,000 10 14,000 11 15,000 11 16,000 12 17,000 13 18,000 14 19,000 14 20,000 15 21,000 16 22,000 17 23,000 17 24,000 18 25,000 19 30,000 23 35,000 27 40,000 30 45,000 34 50,000 38 55,000 42 60,000 46 65,000 49 70,000 53 75,000 57 80,000 61 85,000 65 90,000 68 95,000 72 100,000 76 Each Additional $1,000 Add: $0.76 * Additional Extended Coverage meaning: Collapse of Building, Accidental Discharge of Water or Steam, Freezing, Breakage of Glass, Falling Objects, Vandalism and Malicious Mischief -42- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Dwelling VANDALISM/MALICIOUS MISCHIEF PREMIUM CHART All Territories - One Year Basis Amount of Insurance Vandalism/Malicious Mischief $1,000 $1 1,500 1 2,000 1 2,500 1 3,000 1 3,500 1 4,000 1 5,000 1 6,000 1 7,000 1 7,500 1 8,000 1 9,000 1 10,000 1 11,000 1 12,000 1 13,000 1 14,000 2 15,000 2 16,000 2 17,000 2 18,000 2 19,000 2 20,000 2 21,000 2 22,000 2 23,000 3 24,000 3 25,000 3 30,000 3 35,000 4 40,000 4 45,000 5 50,000 6 55,000 6 60,000 7 65,000 7 70,000 8 75,000 8 80,000 9 85,000 9 90,000 10 95,000 10 100,000 11 Each Additional $1,000 Add: 0.11 -43- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Dwelling ALL RISK PREMIUM CHART Amount of All Risk All Risk Insurance Base Premiums Territory erritory Multiplier $1,000 $1 1 1.981 1,500 1 2 1.435 2,000 2 3 1.354 2,500 2 4 1.257 3,000 3 5 1.370 3,500 3 6 1.011 4,000 3 7 1.110 5,000 4 8 2.129 6,000 5 9 2.164 7,000 6 10 2.164 7,500 6 11 2.080 8,000 7 12 1.106 9,000 8 13 0.869 10,000 9 14 1.088 11,000 9 15C 1.248 12,000 10 15N 1.577 13,000 11 16C 1.381 14,000 12 16N 1.337 15,000 13 17 1.341 16,000 14 18 1.335 17,000 14 19C 1.388 18,000 15 19N 1.449 19,000 16 20 1.673 20,000 17 21,000 18 22,000 19 23,000 20 24,000 20 25,000 21 30,000 26 35,000 30 40,000 34 45,000 38 50,000 43 55,000 47 60,000 51 65,000 55 70,000 60 75,000 64 80,000 68 85,000 72 90,000 77 95,000 81 100,000 85 or Each Additional $1,000 Add: $0.85 -44- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Dwelling PREMIUM CHART NO. 4 Greenhouses Extended Coverage Rates Rates per $100 Insurance Territory 5,6,7, 12,13,14,15C Territory 2,3,4, 16C,17,19C Territory 15N, 16N,18,19N,20 Territory 1,8,9,10,11 Plain Glass $6.70 $7.98 $7.25 $6.54 All Other 0.15 0.18 0.56 0.41 PREMIUM CHART NO. 5 Cloth Awnings Extended Coverage Rate Rates per $100 Insurance Territory 5,6,7, 12,13,14,15C Territory 2,3,4, 16C,17,19C Territory 15N, 16N,18,19N,20 Territory 1,8,9,10,11 Rate $2.82 $3.36 $7.31 $8.75 PREMIUM CHART NO. 6 Radio & Television Antenna Extended Coverage Rate $3.12 per $100 PREMIUM CHART NO. 9 Residential Glass Residence glass coverage may be provided by attaching endorsement TDP-009. Premium Charges Unscheduled Glass - A one year premium of $12.00 Scheduled Glass - Show the type, size, ornamentation, location in building and value for each item of glass. The premium per $100 of insurance is $5.00. -45- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Dwelling PREMIUM CHART NO. 11 Vacancy Clause (TDP-011) For vacancy periods in excess of 60 days, charge: Peril of Fire and Lightning 0.021 per month per $100 insurance Peril of Fire and Lightning* 0.021 per month per $100 insurance Peril of Vandalism & Malicious Mischief 0.111 per month per $100 insurance * For Fire Resistive, Semi-Fire Resistive, and/or Sprinklered Risks PREMIUM CHART NO. 12 Miscellaneous Property Schedules (TDP-012) The following annual premiums per $100 of insurance apply to the types of property listed below when specifically insured under the policy. When reference is made to the Dwelling Fire Premium Tables or EC Premium Charts, use the construction of the main dwelling to determine applicable premium. Property listed below is subject to a 1% deductible (minimum deductible $100). NOTE: Deductibles do not apply to cloth awnings, flag, poles, TV and radio antennas, or satellite dishes when specifically insured. Annual Premium per $100 insurance Type of Property Fire EC All other Perils All Outbuildings not Otherwise Classified Use Dwelling Fire Use Dwelling EC Use Add'l Perils/ Premium Tables Premium Charts All Risk Boat Houses or Boat Docks, wholly or partially Use Dwelling Fire $0.563 Use Add'l Perils/ over water (not floating) and/or contents Premium Tables All Risk Cloth Awnings Use Dwelling Fire Use Premium Use Add'l Perils/ Premium Tables Chart No. 5 All Risk Fences Use Dwelling Fire Use Dwelling EC Use Add'l Perils/ Premium Tables Premium Charts All Risk Flag Poles $0.073 0.362 Use Add'l Perils/ All Risk Flood Lights: Wood Poles 0.125 0.362 Use Add'l Perils/ Metal Poles 0.073 0.362 All Risk Greenhouses & Contents - Plain Glass Use Dwelling Fire 7.137 Use Add'l Perils/ Premium Tables All Risk Greenhouse & Contents-Other Use Dwelling Fire Use Premium Use Add'l Perils/ Premium Tables Chart No. 4 All Risk Land & Outside Site Improvements 0.073 0.041 Use Add'l Perils/ All Risk Swimming Pools: Masonry, Tile or Concrete 0.073 0.041 Use Add'l Perils/ All Others 0.125 0.041 All Risk Tennis & Slab Courts 0.073 0.041 Use Add'l Perils/ All Risk TV and Radio Antenna, Satellite Dishes Use Dwelling Fire Use Premium Use Add'l Perils/ Including Lead-in Wiring Premium Tables Chart No.6 All Risk Trees, Plants & Shrubs Use Dwelling Fire 1.339 0.050 Premium Tables Windmills, Windchargers 0.073 0.362 0.050 Abbreviation: EC-Extended Coverage For property with rates (i.e. boat houses) and properties which are referred to other specific premium charts (i.e. cloth awnings), no territorial multiplier applies. -46- Effective 2/1/99 TEXAS PERSONAL LINES MACHINE LETTER Dwelling PREMIUM CHART NO. 18 Tenant Occupancy Charge (Applicable to all dwelling properties) The following tenant charges are to apply to all policies (on a per item basis) covering either building or contents. Amount of Insurance Tenant Charge/One Year $1,000 $2.08 1,500 2.08 2,000 or over 2.08 -47- Effective 2/1/99