9611A TX 0815

TEXAS
AUTO POLICY

PROGRESSIVE COUNTY MUTUAL INSURANCE COMPANY

7301 Metro Center Drive, Austin, Texas 78744

100% reinsured by Progressive Casualty Insurance Company

MUTUAL COMPANY PARTICIPATING NONASSESSABLE POLICY

THESE POLICY PROVISIONS ALONG WITH THE DECLARATIONS PAGE,

APPLICATION, AND ENDORSEMENTS, IF ANY, ISSUED TO FORM A
PART THEREOF, COMPLETE THIS POLICY.

Form 9611A TX (08/15)

version 2.0
 CONTENTS

INSURING AGREEMENT.................................................................................. 1

GENERAL DEFINITIONS.................................................................................. 1

PART I—LIABILITY TO OTHERS

Insuring Agreement......................................................................................3
Additional Definitions....................................................................................3
Additional Payments.....................................................................................3
Exclusions....................................................................................................4
Limits of Liability...........................................................................................5
Financial Responsibility Laws......................................................................6
Other Insurance...........................................................................................6
Out-of-State Coverage.................................................................................6

PART II(A)—MEDICAL PAYMENTS COVERAGE

Insuring Agreement......................................................................................7
Additional Definitions....................................................................................7
Exclusions....................................................................................................7
Limits of Liability...........................................................................................9
Unreasonable or Unnecessary Medical Expenses......................................9
Assignment of Benefits.............................................................................. 10
Other Insurance......................................................................................... 10

PART II(B)—PERSONAL INJURY PROTECTION COVERAGE

Insuring Agreement.................................................................................... 10
Additional Definition................................................................................... 11
Exclusions.................................................................................................. 11
Limits of Liability......................................................................................... 11
Other Insurance.........................................................................................12
Loss Payments...........................................................................................12
Assignment of Benefits..............................................................................12

PART III—UNINSURED/UNDERINSURED MOTORIST COVERAGE

Insuring Agreement—Uninsured/Underinsured
Motorist Bodily Injury Coverage..............................................................12
Insuring Agreement—Uninsured/Underinsured
Motorist Property Damage Coverage......................................................12
Additional Definitions..................................................................................13
Exclusions..................................................................................................14
Limits of Liability.........................................................................................15
Other Insurance.........................................................................................16

PART IV—DAMAGE TO A VEHICLE

Insuring Agreement—Collision Coverage..................................................16
Insuring Agreement—Comprehensive Coverage.......................................17
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 Insuring Agreement—Additional Custom Parts or
Equipment Coverage..............................................................................17
Insuring Agreement—Rental Reimbursement Coverage............................18
Insuring Agreement—Loan/Lease Payoff Coverage..................................18
Insuring Agreement—Pet Injury Coverage.................................................19
Additional Definitions..................................................................................19
Exclusions..................................................................................................20
Limits of Liability.........................................................................................21
Payment of Loss........................................................................................22
No Benefit to Bailee...................................................................................23
Loss Payable Clause..................................................................................23
Other Sources of Recovery........................................................................23
Appraisal....................................................................................................23

PART V—ROADSIDE ASSISTANCE COVERAGE

Insuring Agreement....................................................................................24
Additional Definitions..................................................................................24
Exclusions..................................................................................................24
Unauthorized Service Provider..................................................................25
Other Insurance.........................................................................................25

PART VI—DUTIES IN CASE OF AN ACCIDENT OR LOSS............................25

PART VII—GENERAL PROVISIONS

Policy Period and Territory..........................................................................26
Mexico Coverage—Limited........................................................................26
Changes.....................................................................................................27
Duty to Report Changes............................................................................27
Our Duties in the Event of a Claim.............................................................28
Settlement of Claims..................................................................................28
Terms of Policy Conformed to Statutes......................................................29
Transfer of Interest.....................................................................................29
Fraud or Misrepresentation........................................................................29
Payment of Premium and Fees..................................................................30
Cancellation...............................................................................................30
Cancellation Refund...................................................................................31
Nonrenewal................................................................................................31
Automatic Termination................................................................................31
Legal Action Against Us.............................................................................31
Our Rights to Recover Payment.................................................................32
Joint and Individual Interests......................................................................33
Bankruptcy.................................................................................................33
Mutuals—Membership and Voting Notice..................................................33
Mutuals—Participation Clause Without Contingent Liability......................33

ii
 TEXAS AUTO POLICY

INSURING AGREEMENT

In return for your payment of the premium, we agree to insure you subject to all the
terms, conditions and limitations of this policy. We will insure you for the coverages
and the limits of liability shown on this policy’s declarations page. Your policy consists
of the policy contract, your insurance application, the declarations page, and all en-
dorsements to this policy.

GENERAL DEFINITIONS

The following definitions apply throughout the policy. Defined terms are printed in bold-
face type and have the same meaning whether in the singular, plural, or any other
form.
1. “Additional auto” means an auto and any land motor vehicle of the private
passenger automobile, pickup body, utility vehicle or van type with a gross vehicle
weight rating of 25,000 pounds or less whose primary use is not the delivery or
transportation of goods, materials or supplies, unless their transport is related to
farming or ranching, of which you become the owner of during the policy period
that does not permanently replace an auto shown on the declarations page, if:
a.  you notify us within 30 days of becoming the owner of the additional auto;
and
b.  you pay any additional premium due.
An additional auto will have the broadest coverage we provide for any auto shown
on the declarations page. If you ask us to insure an additional auto more than
30 days after you become the owner, any coverage we provide will begin at the
time you request coverage.
2. “Auto” means a land motor vehicle:
a. of the private passenger, pickup body, or cargo van type;
b. designed for operation principally upon public roads;
c. with at least four wheels; and
d. with a gross vehicle weight rating of 12,000 pounds or less, according to the
manufacturer’s specifications.
However, “auto” does not include step-vans, parcel delivery vans, or cargo cutaway
vans or other vans with cabs separate from the cargo area.
3. “Auto business” means the business of selling, leasing, repairing, parking, storing,
servicing, delivering or testing vehicles.
4. “Bodily injury” means bodily harm, sickness, or disease, including death that re-
sults from bodily harm, sickness, or disease.
5. “Business day” means a day other than a Saturday, Sunday, or a holiday recog-
nized by the state of Texas.
6. “Covered auto” means:
a. any auto or trailer shown on the declarations page for the coverages appli-
cable to that auto or trailer;
b. any additional auto;
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 c. any replacement auto; or
d. a trailer owned by you.
7. “Declarations page” means the document showing your coverages, limits of li-
ability, covered autos, premium, and other policy-related information. The declara-
tions page may also be referred to as the Auto Insurance Coverage Summary.
8. “Occupying” means in, upon, or getting in, on, out, or off.
9. “Personal vehicle sharing program” means a system or process, operated by a
business, organization, network, group, or individual, that facilitates the sharing of
private passenger motor vehicles for use by individuals, businesses, or other enti-
ties.
10. “Relative” means a person residing in the same household as you, and related to
you by blood, marriage or adoption, and includes a ward, stepchild, or foster child.
Your unmarried dependent children temporarily away from home will qualify as a
relative if they intend to continue to reside in your household.
11. “Replacement auto” means an auto that permanently replaces an auto shown on
the declarations page. “Replacement auto” also means any land motor vehicle
of the private passenger automobile, pickup body, utility vehicle or van type with a
gross vehicle weight rating of 25,000 pounds or less whose primary use is not the
delivery or transportation of goods, materials or supplies, unless their transport is
related to farming or ranching. A replacement auto will have the same coverage
as the auto it replaces. However, if the auto being replaced had or did not have
coverage under Part IV—Damage To A Vehicle, such coverage will apply to the
replacement auto only during the first 30 days after you become the owner un-
less you notify us within that 30-day period that you want us to extend coverage
beyond the initial 30 days.
12. “Ride-sharing activity” means the use of any vehicle to provide transportation
of persons or property in connection with a transportation network company
from the time a driver logs on to, or signs in to, any online-enabled application,
software, website or system until the time the driver logs out of, or signs off of, any
such online-enabled application, software, website or system, whether or not the
driver has accepted any passenger(s) or delivery assignment, including the time
the driver is on the way to pick up any passenger(s) or property, or is transporting
any passenger(s) or property.
13. “Trailer” means a non-motorized trailer, including a farm wagon or farm implement,
designed to be towed on public roads by an auto and not being used:
a. for commercial purposes;
b. as an office, store, or for display purposes; or
c. as a passenger conveyance.
14. “Transportation network company” means a corporation, partnership, sole
proprietorship, or other entity that uses any online-enabled application, software,
website or system to connect drivers with clients or passengers to facilitate and/or
provide transportation or delivery services for compensation or a fee.
15. “We,” “us” and “our” mean the underwriting company providing the insurance, as
shown on the declarations page.

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16. “You” and “your” mean:
a. a person shown as a named insured on the declarations page; and
b. the spouse of a named insured if:
(i) residing in the same household at the time of the loss; or
(ii) not residing in the same household during a period of separation in con-
templation of divorce.

PART I—LIABILITY TO OTHERS

INSURING AGREEMENT

If you pay the premium for this coverage, we will pay damages for bodily injury and
property damage for which an insured person becomes legally responsible because
of an accident.

Damages include prejudgment interest awarded against an insured person.

We will settle or defend, at our option, any claim for damages covered by this Part I.
Our duty to settle or defend ends when our limit of liability for this coverage has been
exhausted.

ADDITIONAL DEFINITIONS

When used in this Part I:

1. “Insured person” means:
a.  you or a relative with respect to an accident arising out of the ownership,
maintenance or use of an auto or a trailer;
b. any person with respect to an accident arising out of that person’s use of a
covered auto with the permission of you or a relative;
c. any person or organization with respect only to vicarious liability for the acts or
omissions of a person described in a. or b. above; and
d. any “Additional Interest” shown on the declarations page with respect only to
its liability for the acts or omissions of a person described in a. or b. above.
2. “Property damage” means physical damage to, destruction of, or loss of use of,
tangible property.

ADDITIONAL PAYMENTS

In addition to our limit of liability, we will pay for an insured person:

1. all expenses we incur in the settlement of any claim or defense of any lawsuit;
2. interest accruing after entry of judgment, until we have paid, offered to pay, or de-
posited in court, that portion of the judgment which does not exceed our limit of
liability. This does not apply if we have not been given notice of suit or the opportu-
nity to defend an insured person;
3. the premium on any appeal bond or attachment bond required in any lawsuit we
defend. We have no duty to purchase a bond in an amount exceeding our limit of
liability, and we have no duty to apply for or furnish these bonds;
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4. up to $250 for a bail bond required because of an accident resulting in bodily in-
jury or property damage covered under this Part I. We have no duty to apply for
or furnish this bond; and
5. reasonable expenses, including loss of earnings up to $200 per day, incurred at
our request.

EXCLUSIONS—READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN EX-

CLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART I.

Coverage under this Part I, including our duty to defend, will not apply to any insured
person for:
1. bodily injury or property damage arising out of the ownership, maintenance or
use of any vehicle or trailer while it is:
a. being used to carry persons for compensation or a fee;
b. being used to carry property for compensation or a fee. This exclusion does
not apply to you or a relative, unless the primary usage of the auto is to carry
property for compensation or a fee;
c. rented or leased to another. This exclusion does not apply if you or a relative
lends your covered auto to another at no charge other than for reimburse-
ment of operating expenses;
d. being used for retail or wholesale delivery, including, but not limited to, the pick-
up, transport or delivery of magazines, newspapers, mail or food; or
e. for ride-sharing activity.
This exclusion does not apply to shared-expense car pools;
2. bodily injury to an employee of that insured person arising out of or within the
course of employment. This exclusion does not apply to domestic employees if
benefits are neither paid nor required to be provided under workers’ compensation,
disability benefits, or similar laws;
3. bodily injury or property damage arising out of an accident involving any vehicle
while being maintained or used by a person while employed or engaged in any
auto business. This exclusion does not apply to you or a relative, or an agent or
employee of you or a relative, when using a covered auto;
4. bodily injury or property damage resulting from, or sustained during practice or
preparation for:
a. any pre-arranged or organized racing, stunting, speed or demolition contest or
activity; or
b. any driving activity conducted on a permanent or temporary racetrack or race-
course;
5. bodily injury or property damage due to a nuclear reaction or radiation;
6  bodily injury or property damage for which insurance:
a. is afforded under a nuclear energy liability insurance contract; or
b. would be afforded under a nuclear energy liability insurance contract but for its
termination upon exhaustion of its limit of liability;
7. any obligation for which the United States Government is liable under the Federal
Tort Claims Act;
8. bodily injury or property damage caused by an intentional act of that insured
4
 person, or at the direction of that insured person, even if the actual injury or dam-
age is different than that which was intended or expected;
9.  property damage to any property owned by, rented to, being transported by, used
by, or in the charge of that insured person. This exclusion does not apply to a
rented residence or garage;
10.  bodily injury to you or any relative, except to the extent of the minimum limits of
liability coverage required by the Texas Transportation Code Chapter 601, entitled
“Motor Vehicle Safety-Responsibility Act”;
11.  bodily injury or property damage arising out of the ownership, maintenance or
use of any vehicle owned by you or furnished or available for your regular use,
other than a covered auto for which this coverage has been purchased;
12.  bodily injury or property damage arising out of the ownership, maintenance or
use of any vehicle owned by a relative or furnished or available for the regular use
of a relative, other than a covered auto for which this coverage has been pur-
chased. This exclusion does not apply to your maintenance or use of such vehicle;
13.  bodily injury or property damage arising out of your or a relative’s use of a ve-
hicle, other than a covered auto, without the permission of the owner of the vehicle
or the person in lawful possession of the vehicle;
14. punitive or exemplary damages;
15.  bodily injury or property damage caused by, or reasonably expected to result
from, a criminal act or omission of that insured person. This exclusion applies
regardless of whether that insured person is actually charged with, or convicted
of, a crime. For purposes of this exclusion, criminal acts or omissions do not include
traffic violations; or
16. property damage due to or as a consequence of a seizure of any vehicle by
federal or state law enforcement officers as evidence in a case against you under
Chapter 481 of the Health and Safety Code, or under the federal Controlled Sub-
stances Act, if you are convicted in such a case.

LIMITS OF LIABILITY

The limit of liability shown on the declarations page for liability coverage is the most we
will pay regardless of the number of:
1. claims made;
2.  covered autos;
3.  insured persons;
4. lawsuits brought;
5. vehicles involved in the accident; or
6. premiums paid.

If your declarations page shows a split limit:

1. the amount shown for “each person” is the most we will pay for all damages due to
bodily injury to one person resulting from any one accident;
2. subject to the “each person” limit, the amount shown for “each accident” is the most
we will pay for all damages due to bodily injury sustained by two or more persons
in any one accident; and
5
3. the amount shown for “property damage” is the most we will pay for the total of all
property damage resulting from any one accident.

The “each person” limit of liability applies to the total of all claims made for bodily in-
jury to a person and all claims of others arising from such bodily injury, including, but
not limited to, bystander claims, emotional injury or mental anguish resulting from the
bodily injury of another, loss of society, loss of companionship, loss of services, loss of
consortium, and wrongful death.

If the declarations page shows that “combined single limit” or “CSL” applies, the
amount shown is the most we will pay for the total of all damages resulting from any
one accident. However, without changing this limit of liability, we will comply with any law
that requires us to provide any separate limits.

No one is entitled to duplicate payments for the same elements of damages.

Any payment to a person under this Part I will be reduced by any payment to that person
under Part II(A)—Medical Payments Coverage, Part II(B)—Personal Injury Protection
Coverage, or Part III—Uninsured/Underinsured Motorist Coverage.

We will not pay under this Part I any expenses paid or payable under Part II(A)—
Medical Payments Coverage.

If multiple auto policies issued by us are in effect for you, we will pay no more than the
highest limit of liability for this coverage available under any one policy.

An auto and attached trailer are considered one auto. Therefore, the limits of liability
will not be increased for an accident involving an auto that has an attached trailer.

FINANCIAL RESPONSIBILITY LAWS

When we certify this policy as proof of financial responsibility, this policy will comply with
the law to the extent required.

OTHER INSURANCE

If there is any other applicable liability insurance or bond, any liability insurance we pro-
vide will be excess over any other applicable liability insurance or bond. If more than one
liability insurance policy or bond applies on an excess basis, we will pay only our share
of the damages. Our share is the proportion that our limit of liability bears to the total of
all applicable limits.

OUT-OF-STATE COVERAGE

If an accident to which this Part I applies occurs in any state, territory or possession of
the United States of America or any province or territory of Canada, other than the one
in which a covered auto is principally garaged, and the state, province, territory or pos-
6
session has:
1. a financial responsibility or similar law requiring limits of liability for bodily injury
or property damage higher than the limits shown on the declarations page, this
policy will provide the higher limits; or
2. a compulsory insurance or similar law requiring a non-resident to maintain insur-
ance whenever the non-resident uses an auto in that state, province, territory or
possession, this policy will provide the greater of:
a. the required minimum amounts and types of coverage; or
b. the limits of liability under this policy.

PART II(A)—MEDICAL PAYMENTS COVERAGE

INSURING AGREEMENT

If you pay the premium for this coverage, we will pay the reasonable expenses incurred
for necessary medical services received within three years from the date of a motor
vehicle accident because of bodily injury:
1. sustained by an insured person; and
2. caused by that motor vehicle accident.

We, or someone on our behalf, will determine:

1. whether the expenses for medical services are reasonable; and
2. whether the medical services are necessary.

ADDITIONAL DEFINITIONS

When used in this Part II(A):

1. “Insured person” means:
a.  you or a relative:
(i) while occupying an auto; or
(ii) when struck by a motor vehicle or a trailer while not occupying a self-
propelled motorized vehicle; and
b. any other person while occupying a covered auto with the permission of you
or a relative.
2. “Medical services” means medical, surgical, dental, x-ray, ambulance, hospital,
professional nursing, and funeral services, and includes the cost of eyeglasses,
hearing aids, pharmaceuticals, orthopedics, and prosthetic devices.
3. “Motor vehicle” means a land motor vehicle designed for use principally on public
roads.

EXCLUSIONS—READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN

EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS
PART II(A).

Coverage under this Part II(A) will not apply to bodily injury:
1. sustained by any person while occupying a covered auto while it is being used:
a. to carry persons or property for compensation or a fee;
7
 b. for retail or wholesale delivery, including, but not limited to, the pickup, transport
or delivery of magazines, newspapers, mail or food; or
c. for ride-sharing activity.
This exclusion does not apply to shared-expense car pools;
2. arising out of an accident involving a vehicle while being maintained or used by a
person while employed or engaged in any auto business. This exclusion does not
apply to you, a relative, or an agent or employee of you or a relative, when using
a covered auto;
3. to any person resulting from, or sustained during practice or preparation for:
a. any pre-arranged or organized racing, stunting, speed or demolition contest or
activity; or
b. any driving activity conducted on a permanent or temporary racetrack or race-
course;
4. due to a nuclear reaction or radiation;
5. for which insurance:
a. is afforded under a nuclear energy liability insurance contract; or
b. would be afforded under a nuclear energy liability insurance contract but for its
termination upon exhaustion of its limit of liability;
6. for which the United States Government is liable under the Federal Tort Claims Act;
7. sustained by any person while occupying any vehicle or trailer while located for
use as a residence or premises;
8. if workers’ compensation benefits are available for the bodily injury;
9. sustained by any person while occupying or when struck by any vehicle owned by
you or furnished or available for your regular use, other than a covered auto for
which this coverage has been purchased;
10. sustained by any person while occupying or when struck by any vehicle owned
by a relative or furnished or available for the regular use of a relative, other than
a covered auto for which this coverage has been purchased. This exclusion does
not apply to you;
11. to you or a relative, while occupying any vehicle, other than a covered auto,
without the permission of the owner of the vehicle or the person in lawful posses-
sion of the vehicle;
12. to any person while occupying a covered auto while leased or rented to others,
including while being used in connection with a personal vehicle sharing pro-
gram. This exclusion does not apply if you or a relative lends your covered auto
to another at no charge other than for reimbursement of operating expenses;
13. caused directly or indirectly by:
a. war (declared or undeclared) or civil war;
b. warlike action by any military force of any government, sovereign or other au-
thority using military personnel or agents. This includes any action taken to
hinder or defend against an actual or expected attack; or
c. insurrection, rebellion, revolution, usurped power, or any action taken by a gov-
ernmental authority to hinder or defend against any of these acts;
14. caused directly or indirectly by:
a. any accidental or intentional discharge, dispersal or release of radioactive,
nuclear, pathogenic or poisonous biological material; or
8
 b. any intentional discharge, dispersal or release of chemical or hazardous mate-
rial for any purpose other than its safe and useful purpose; or
to an insured person caused by, or reasonably expected to result from, a crimi-
15. 
nal act or omission of that insured person. This exclusion applies regardless of
whether the insured person is actually charged with, or convicted of, a crime. For
purposes of this exclusion, criminal acts or omissions do not include traffic violations.

LIMITS OF LIABILITY

The limit of liability shown on the declarations page for Medical Payments Coverage is
the most we will pay for each insured person injured in any one accident, regardless
of the number of:
1. claims made;
2.  covered autos;
3.  insured persons;
4. lawsuits brought;
5. vehicles involved in the accident; or
6. premiums paid.

No one will be entitled to duplicate payments under this policy for the same elements
of damages.

Any amount payable to an insured person under this Part II(A) will be reduced by any
amount paid or payable for the same expense under Part I—Liability To Others or Part
III—Uninsured/Underinsured Motorist Coverage.

If multiple auto policies issued by us are in effect for you, we will pay no more than the
highest limit of liability for this coverage available under any one policy.

UNREASONABLE OR UNNECESSARY MEDICAL EXPENSES

If an insured person incurs expenses for medical services that we deem to be unrea-
sonable or unnecessary, we may refuse to pay for those expenses and contest them.

If the medical service provider sues the insured person because we refuse to pay
expenses for medical services that we deem to be unreasonable or unnecessary, we
will pay any resulting defense costs, and any resulting judgment against the insured
person, subject to the limit of liability for this coverage. We will choose the counsel.
We will also pay reasonable expenses, including loss of earnings up to $200 per day,
incurred at our request.

The insured person may not sue us for expenses for medical services we deem to
be unreasonable or unnecessary unless the insured person paid the entire disputed
amount to the medical service provider or the medical service provider has initiated
collection activity against the insured person for the unreasonable or unnecessary
expenses.
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ASSIGNMENT OF BENEFITS

Payments for medical expenses will be paid directly to a physician or other healthcare
provider if we receive a written assignment signed by the insured person to whom
such benefits are payable.

OTHER INSURANCE

If there is other applicable auto medical payments insurance, we will pay only our share
of the loss. Our share is the proportion that our limit of liability bears to the total of all
applicable limits. However, any insurance we provide for an insured person occupy-
ing a vehicle or trailer, other than a covered auto, will be excess over any other auto
insurance providing payments for medical services.

PART II(B)—PERSONAL INJURY PROTECTION COVERAGE

INSURING AGREEMENT

If you pay the premium for this coverage, we will pay Personal Injury Protection Benefits
because of bodily injury:
1. resulting from a motor vehicle accident; and
2. sustained by an insured person.

Our payment will only be for losses or expenses incurred within three years of the ac-
cident.

Personal Injury Protection Benefits consist of:

1. Reasonable expenses incurred for necessary medical and funeral services.
2. Eighty percent (80%) of an insured person’s loss of income from employment.
This benefit applies only if, at the time of the accident, the insured person:
a. was an income producer; and
b. was in an occupational status.
Benefits due to loss of income from employment do not apply to any loss after the
insured person dies.
Loss of income is the difference between:
a. income which would have been earned had the insured person not been
injured; and
b. the amount of income actually received from employment during the disability.
If the income being earned as of the date of the accident is a salary or fixed re-
muneration, it shall be used in determining the amount of income which would
have been earned. Otherwise, the average monthly income earned during the
period (not more than 12 months) preceding the accident shall be used.
3. Reasonable expenses incurred for obtaining essential services. These services
must replace those an insured person would normally have performed:
a. without pay;
b. during the period of disability; and
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 c. for the care and maintenance of the family or household.
Essential service benefits apply only if, at the time of the accident, the insured
person:
a. was not an income producer; and
b. was not in an occupational status.
Essential service benefits do not apply to any loss after the insured person dies.

ADDITIONAL DEFINITION

When used in this Part II(B):

1. “Insured person” means:
a. you or a relative;
(i) while occupying; or
(ii) when struck by;
a motor vehicle designed for use mainly on public roads or a trailer; and
b. any other person while occupying a covered auto with your permission.

EXCLUSIONS—READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN

EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS
PART II(B).

We do not provide Personal Injury Protection Coverage for bodily injury sustained:
1. by any person in an accident caused intentionally by, or at the direction of, that
person;
2. by any person while that person is committing a felony;
3. by any person while that person is attempting to elude arrest by a law enforcement
official;
4. by any person while occupying, or when struck by, any motor vehicle, other than
your covered auto, which is owned by you; or
5. by a relative while occupying, or when struck by, any motor vehicle, other than
your covered auto, which is owned by a relative.

LIMITS OF LIABILITY

The limit of liability shown on the declarations page for this coverage is the maximum
limit of liability for each person injured in any one accident. This is the most we will pay
regardless of the number of:
1. insured persons;
2. claims made;
3. vehicles or premiums shown on the declarations page; or
4. vehicles involved in the accident.

Any amount payable to an insured person under this Part II(B) will be reduced by any
amount paid or payable for the same expense under Part I—Liability To Others or Part
III—Uninsured/Underinsured Motorist Coverage.

11
If multiple auto policies issued by us are in effect for you, we will pay no more than the
highest limit of liability for this coverage available under any one policy.

OTHER INSURANCE

If there is other applicable Personal Injury Protection insurance, we will pay only our
share. Our share is the proportion that our limit of liability bears to the total of all appli-
cable limits. However, any insurance we provide with respect to an auto you do not own
shall be excess over any other collectible Personal Injury Protection insurance.

LOSS PAYMENTS

Benefits are payable under this Part II(B) as follows:

1. Not more frequently than once every two weeks; and
2. Within 30 days after satisfactory proof of claim is received.

ASSIGNMENT OF BENEFITS

Payments for medical expenses will be paid directly to a physician or other health care
provider if we receive a written assignment signed by the insured person to whom
such benefits are payable.

PART III—UNINSURED/UNDERINSURED MOTORIST COVERAGE

INSURING AGREEMENT—UNINSURED/UNDERINSURED MOTORIST BODILY

INJURY COVERAGE

If you pay the premium for this coverage, we will pay for damages that an insured
person is legally entitled to recover from the owner or operator of an uninsured motor
vehicle because of bodily injury:
1. sustained by an insured person;
2. caused by an accident; and
3. arising out of the ownership, maintenance or use of an uninsured motor vehicle.

INSURING AGREEMENT—UNINSURED/UNDERINSURED MOTORIST

PROPERTY DAMAGE COVERAGE

If you pay the premium for this coverage, we will pay for damages that an insured
person is legally entitled to recover from the owner or operator of an uninsured motor
vehicle due to property damage to a covered auto:
1. caused by an accident; and
2. arising out of the ownership, maintenance, or use of an uninsured motor vehicle.

If we and an insured person do not agree as to whether a vehicle is actually uninsured

or underinsured, the burden of proof as to that issue shall be on us.

12
Any judgment or settlement for damages against an owner or operator of an uninsured
motor vehicle that arises out of a lawsuit brought without our written consent is not
binding on us.

ADDITIONAL DEFINITIONS

When used in this Part III:

1. “Insured person” means:
a.  you or a relative;
b. any person while operating a covered auto with the permission of you or a
relative;
c. any person occupying, but not operating, a covered auto; and
d. any person who is entitled to recover damages covered by this Part III because
of bodily injury sustained by a person described in a., b. or c. above.
2. “Property damage” means physical damage to, or destruction or loss of use of:
a. a covered auto;
b. any property owned by an insured person and contained in the covered
auto at the time of the accident; and
c. any property owned by you or a relative while contained in any auto not
owned by, but being operated by, you or a relative.
3. “Uninsured motor vehicle” means a land motor vehicle or trailer of any type:
a. to which no bodily injury liability bond or policy applies at the time of the ac-
cident;
b. to which a bodily injury liability bond or policy applies at the time of the acci-
dent, but the bonding or insuring company:
(i) denies coverage; or
(ii) is or becomes insolvent;
c. to which a bodily injury liability bond or policy applies at the time of the ac-
cident, but its limit of liability for bodily injury is less than the minimum limit of
liability for bodily injury specified by the financial responsibility law of the state
in which the covered auto is principally garaged;
d. that is a hit-and-run vehicle whose owner or operator cannot be identified and
which strikes:
(i)  you or a relative;
(ii) a vehicle that you or a relative are occupying; or
(iii)  a covered auto;
provided that the insured person, or someone on his or her behalf, reports
the accident to the police or civil authority within 24 hours or as soon as prac-
ticable after the accident; or
e. that is an underinsured motor vehicle. An underinsured motor vehicle is one to
which a liability bond or policy applies at the time of the accident, but its limit of
liability either:
(i) is not enough to pay the full amount the insured person is legally entitled
to recover as damages; or
(ii) has been reduced by payment of claims to an amount which is not enough
to pay the full amount the insured person is legally entitled to recover as
damages.
13
 An “uninsured motor vehicle” does not include any vehicle or equipment:
a. owned by you or a relative or furnished or available for the regular use of you
or a relative;
b. owned or operated by a self-insurer under any applicable motor vehicle law,
except a self-insurer that is or becomes insolvent;
c. owned by any governmental unit or agency;
d. operated on rails or crawler treads;
e. designed mainly for use off public roads, while not on public roads;
f. while located for use as a residence or premises; or
g. that is a covered auto.

EXCLUSIONS—READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN EX-

CLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART III.

Coverage under this Part III will not apply:

1. to bodily injury sustained by any person while using or occupying:
a. a covered auto while being used
(i) to carry persons for compensation or a fee; or
(ii) for ride-sharing activity.
This exclusion does not apply to shared-expense car pools;
b. a covered auto being used to carry property for compensation or a fee. This
does not apply to you or a relative, unless the primary usage of the auto is to
carry property for compensation or a fee;
c. a covered auto that is rented or leased to another. This exclusion does not ap-
ply if you or a relative lends your covered auto to another at no charge other
than for reimbursement of operating expenses; or
d. a motor vehicle that is owned by or available for the regular use of you or a
relative. This exclusion does not apply to a covered auto that is insured under
this Part III;
2. to bodily injury sustained by you or a relative while using any vehicle, other than
a covered auto, without the permission of the owner of the vehicle or the person in
lawful possession of the vehicle;
3. directly or indirectly to benefit any insurer or self-insurer under any of the following
or similar laws:
a. workers’ compensation law; or
b. disability benefits law;
4. to any punitive or exemplary damages;
5. to any person for bodily injury or property damage resulting from an intentional
act of that person;
6. to bodily injury sustained by any person if that person or the legal representative
of that person settles without our written consent;
7. to bodily injury arising out of the use of a covered auto while being used in con-
nection with a personal vehicle sharing program. This exclusion does not apply
to the operation of a covered auto by you, a relative, or a rated resident;
8. to property damage:
a. sustained while a covered auto is being used or driven by a person while
14
 employed or engaged in any auto business. However, this exclusion does not
apply to you or a relative, or an agent or employee of you or a relative, when
using a covered auto;
b. resulting from, or sustained during practice or preparation for:
(i) any pre-arranged or organized racing, stunting, speed, or demolition con-
test or activity; or
(ii) any driving activity conducted on a permanent or temporary racetrack or
racecourse; or
c. for which insurance:
(i) is afforded under a nuclear energy liability insurance contract; or
(ii) would be afforded under a nuclear energy liability insurance contract but
for its termination upon exhaustion of its limit of liability; or
9. to the first $250 of property damage sustained by an insured person as a result
of any one accident.

LIMITS OF LIABILITY

The limit of liability shown on the declarations page for Uninsured/Underinsured

Motorist Coverage is the most we will pay regardless of the number of:
1. claims made;
2. covered autos;
3. insured persons;
4. lawsuits brought;
5. vehicles involved in the accident; or
6. premiums paid.

If your declarations page shows a split limit:

1. the amount shown for “each person” is the most we will pay for all damages due to
bodily injury to one person;
2. subject to the “each person” limit, the amount shown for “each accident” is the most
we will pay for all damages due to bodily injury sustained by two or more persons
in any one accident; and
3. the amount shown for “each accident” for property damage is our maximum limit
of liability for all property damage resulting from any one accident.

The “each person” limit of liability includes the total of all claims made for bodily injury
to an insured person and all claims of others arising from such bodily injury, includ-
ing, but not limited to, bystander claims, emotional injury or mental anguish resulting
from the bodily injury of another, loss of society, loss of companionship, loss of ser-
vices, loss of consortium, and wrongful death.

If the declarations page shows that “combined single limit” or “CSL” applies, the
amount shown is the most we will pay for the total of all damages resulting from any
one accident. However, without changing this total limit of liability, we will comply with
any law that requires us to provide any separate limits.

15
The damages recoverable under this Part III will be reduced by all sums:
1. paid or payable because of bodily injury by or on behalf of any persons or organi-
zations that may be legally responsible;
2. paid or payable under Part I—Liability To Others; and
3. paid or payable because of bodily injury under any of the following or similar laws:
a. workers’ compensation law; or
b. disability benefits law.

We will not pay under this Part III any expenses paid or payable under Part II(A)—Medi-
cal Payments Coverage or Part II(B) Personal Injury Protection Coverage.

The damages recoverable for property damage under this Part III will be reduced by
all sums paid or payable because of property damage by or on behalf of any persons
or organizations who may be legally responsible, including, but not limited to, all sums
paid under Part I—Liability To Others.

No one will be entitled to duplicate payments for the same elements of damages.

If multiple auto policies issued by us are in effect for you, we will pay no more than the
highest limit of liability for this coverage available under any one policy.

OTHER INSURANCE

If there is other applicable uninsured or underinsured motorist coverage, we will pay

only our share of the damages. Our share is the proportion that our limit of liability
bears to the total of all available coverage limits. However, any insurance we provide
with respect to an auto you do not own shall be excess over any other valid and col-
lectible insurance.

For any property damage to which the coverage under Part IV—Damage To A Vehicle
of this policy (or similar coverage from another policy) and this coverage both apply, you
may choose the coverage from which damages will be paid. You may recover under
both coverages, but only if:
1. neither one by itself is sufficient to cover the loss;
2. you pay the higher deductible amount (but you do not have to pay both deduct-
ibles); and
3. you will not recover more than the actual damages.

PART IV—DAMAGE TO A VEHICLE

INSURING AGREEMENT—COLLISION COVERAGE

If you pay the premium for this coverage, we will pay for sudden, direct and accidental
loss to a:
1.  covered auto, including an attached trailer; or
2.  non-owned auto;
and its custom parts or equipment, resulting from collision.
16
In addition, we will pay the reasonable cost to replace any child safety seat damaged in
an accident to which this coverage applies.

INSURING AGREEMENT—COMPREHENSIVE COVERAGE

If you pay the premium for this coverage, we will pay for sudden, direct and accidental
loss to a:
1.  covered auto, including an attached trailer; or
2.  non-owned auto;
and its custom parts or equipment, that is not caused by collision.

A loss not caused by collision includes:

1. contact with an animal (including a bird);
2. explosion or earthquake;
3. fire;
4. malicious mischief or vandalism;
5. missiles or falling objects;
6. riot or civil commotion;
7. theft or larceny;
8. windstorm, hail, water or flood; or
9. breakage of glass not caused by collision.

In addition, we will pay for:

1. reasonable transportation expenses incurred by you if a covered auto is stolen; and
2. loss of use damages that you are legally liable to pay if a non-owned auto is stolen.
A combined maximum of $900, not exceeding $30 per day, will apply to these addi-
tional benefits. The additional benefit for transportation expenses will not apply if you
purchased Rental Reimbursement Coverage for the stolen covered auto.

Coverage for transportation expenses and loss of use damages begins 48 hours after
you report the theft to us and ends the earliest of:
1. when the auto has been recovered and returned to you or its owner;
2. when the auto has been recovered and repaired;
3. when the auto has been replaced; or
4. 72 hours after we make an offer to settle the loss if the auto is deemed by us to be
a total loss.

We must receive written proof of transportation expenses and loss of use damages.

INSURING AGREEMENT—ADDITIONAL CUSTOM PARTS

OR EQUIPMENT COVERAGE

We will pay for sudden, direct and accidental loss to custom parts or equipment on a
covered auto for which this coverage has been purchased. This coverage applies only
if you have purchased both Comprehensive Coverage and Collision Coverage for that
covered auto and the loss is covered under one of those coverages. This coverage
17
applies in addition to any coverage automatically provided for custom parts or equip-
ment under Comprehensive Coverage or Collision Coverage.

INSURING AGREEMENT—RENTAL REIMBURSEMENT COVERAGE

We will reimburse rental charges incurred when you rent an auto from a rental agency
or auto repair shop due to a loss to a covered auto for which Rental Reimbursement
Coverage has been purchased. This coverage applies only if you have purchased both
Comprehensive Coverage and Collision Coverage for that covered auto and the loss
is covered under one of those coverages.

Additional fees or charges for insurance, damage waivers, optional equipment, fuel, or
accessories are not covered.

This coverage is limited to the each day limit shown on the declarations page for a
maximum of 30 days.

If Rental Reimbursement Coverage applies, no other coverage under this policy for
rental expenses will apply.

Rental charges will be reimbursed beginning:

1. when the covered auto cannot be driven due to a loss; or
2. if the covered auto can be driven, when you deliver the covered auto to an auto
repair shop or one of our Service Centers for repairs due to the loss;
and ending the earliest of:
1. when the covered auto has been returned to you;
2. when the covered auto has been repaired;
3. when the covered auto has been replaced;
4. 72 hours after we make an offer to settle the loss if the covered auto is deemed by
us to be a total loss; or
5. when you incur 30 days worth of rental charges.

You must provide us written proof of your rental charges to be reimbursed.

INSURING AGREEMENT—LOAN/LEASE PAYOFF COVERAGE

If you pay the premium for this coverage, and the covered auto for which this cover-
age was purchased is deemed by us to be a total loss, we will pay, in addition to any
amounts otherwise payable under this Part IV, the difference between:
1. the actual cash value of the covered auto at the time of the total loss; and
2. any greater amount the owner of the covered auto is legally obligated to pay under
a written loan or lease agreement to which the covered auto is subject at the time
of the total loss, reduced by:
a. unpaid finance charges or refunds due to the owner for such charges;
b. excess mileage charges or charges for wear and tear;

18
 c. charges for extended warranties or refunds due to the owner for extended war-
ranties;
d. charges for credit insurance or refunds due to the owner for credit insurance;
e. past due payments and charges for past due payments; and
f. collection or repossession expenses.

However, our payment under this coverage shall not exceed the limit of liability shown
on the declarations page. The limit of liability is a percentage of the actual cash value
of the covered auto at the time of the loss.

This coverage applies only if you have purchased both Comprehensive Coverage and
Collision Coverage for that covered auto and the loss is covered under one of those
coverages.

INSURING AGREEMENT—PET INJURY COVERAGE

If you have purchased Collision coverage for at least one covered auto under your
policy, and if your pet sustains injury or death while inside a covered auto or non-
owned auto at the time of a loss covered under Collision or Comprehensive coverage,
we will provide:
1. up to $1,000 for reasonable and customary veterinary fees incurred by you or a
relative if your pet is injured in, or as a direct result of, the covered loss; or
2. a $1,000 death benefit if your pet dies in, or as a direct result of, the covered loss,
less any payment we made toward veterinary expenses for your pet.
In the event of a covered loss due to the theft of a covered auto or non-owned auto,
we will provide the death benefit provided your pet is inside that auto at the time of the
theft and your pet is not recovered.

ADDITIONAL DEFINITIONS

When used in this Part IV:

1. “Collision” means the upset of a vehicle or its impact with another vehicle or object.
2. “Custom parts or equipment” means equipment, devices, accessories, en-
hancements and changes, other than those that are offered by the manufacturer
specifically for that auto model, or that are installed by the auto dealership as part
of the original sale of a new auto, that:
a. are permanently installed or attached; and
b. alter the appearance or performance of the auto.
3. “Non-owned auto” means an auto that is not owned by or furnished or available
for the regular use of you or a relative while in the custody of or being operated
by you or a relative with the permission of the owner of the auto or the person in
lawful possession of the auto.
4. “Property damage” means physical damage to, destruction of, or loss of use of,
tangible property.
5. “Your pet” means any dog or cat owned by you or a relative.

19
EXCLUSIONS—READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN EX-
CLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART IV.

Coverage under this Part IV will not apply for loss:

1. from property damage arising out of the ownership, maintenance, or use of an
auto or trailer while it is:
a. being used to carry persons or property for compensation or a fee. This exclu-
sion does not apply to shared-expense car pools;
b. being used to carry property for compensation or a fee. This exclusion does
not apply to you or a relative unless the primary usage of the auto is to carry
property for compensation or a fee;
c. rented or leased to another, including while being used in connection with a
personal vehicle sharing program. This exclusion does not apply if you or a
relative lends your covered auto at no charge other than for reimbursement
of operating expenses; or
d. being used for ride-sharing activity;
2. to a non-owned auto while being maintained or used by a person while employed
or engaged in any auto business;
3. to any vehicle resulting from, or sustained during practice or preparation for:
a. any pre-arranged or organized racing, stunting, speed or demolition contest or
activity; or
b. any driving activity conducted on a permanent or temporary racetrack or race-
course;
4. to any vehicle for which insurance:
a. is afforded under a nuclear energy liability insurance contract; or
b. would be afforded under a nuclear energy liability insurance contract but for its
termination upon exhaustion of its limit of liability;
5. to any vehicle caused by an intentional act committed by or at the direction of you,
a relative, or the owner of a non-owned auto, even if the actual damage is differ-
ent than that which was intended or expected;
6. to any vehicle while being used in connection with a personal vehicle sharing
program. This exclusion does not apply to the operation of a covered auto by you,
a relative, or a rated resident;
7. due to destruction or confiscation by governmental or civil authorities of any vehicle
because you or any relative engaged in illegal activities. This includes loss due to
or as a consequence of a seizure of any vehicle by federal or state law enforcement
officers as evidence in a case against you under Chapter 481 of the Health and
Safety Code, or under the federal Controlled Substances Act, if you are convicted
in such a case;
8. to any vehicle that is due and confined to:
a. wear and tear;
b. freezing;
c. mechanical, electrical or electronic breakdown or failure; or
d. road damage to tires.
This exclusion does not apply if the damage results from the theft of a vehicle;
9. to portable equipment, devices, accessories, and any other personal effects that
20
 are not permanently installed. This includes, but is not limited to:
a. tapes, compact discs, cassettes, DVDs, and other recording or recorded media;
b. any case or other container designed for use in storing or carrying tapes, com-
pact discs, cassettes, DVDs, or other recording or recorded media;
c. any device used for the detection or location of radar, laser, or other speed
measuring equipment or its transmissions; and
d. CB radios, telephones, two-way mobile radios, DVD players, personal comput-
ers, personal digital assistants, or televisions;
10. to any vehicle caused directly or indirectly by:
a. war (declared or undeclared) or civil war;
b. warlike action by any military force of any government, sovereign, or other
authority using military personnel or agents. This includes any action taken to
hinder or defend against an actual or expected attack; or
c. insurrection, rebellion, revolution, usurped power, or any action taken by a gov-
ernmental authority to hinder or defend against any of these acts;
11. to any vehicle caused directly or indirectly by:
a. any accidental or intentional discharge, dispersal or release of radioactive,
nuclear, pathogenic or poisonous biological material; or
b. any intentional discharge, dispersal or release of chemical or hazardous mate-
rial for any purpose other than its safe and useful purpose; or
12. to any vehicle caused by, or reasonably expected to result from, a criminal act or
omission of you, a relative, or the owner of a non-owned auto. This exclusion ap-
plies regardless of whether you, the relative, or the owner of the non-owned auto
is actually charged with, or convicted of, a crime. For purposes of this exclusion,
criminal acts or omissions do not include traffic violations.

LIMITS OF LIABILITY

1. The limit of liability for loss to a covered auto, non-owned auto, or custom parts
or equipment is the lowest of:
a. the actual cash value of the stolen or damaged property at the time of the loss
reduced by the applicable deductible;
b. the amount necessary to replace the stolen or damaged property reduced by
the applicable deductible;
c. the amount necessary to repair the damaged property to its pre-loss condition
reduced by the applicable deductible; or
d. the Stated Amount shown on the declarations page for that covered auto.
However, the most we will pay for loss to:
a.  custom parts or equipment is $1,000 unless you purchased Additional
Custom Parts or Equipment Coverage (“ACPE”). If you purchased ACPE, the
most we will pay is $1,000 plus the amount of ACPE you purchased.
b. a trailer is the limit of liability shown on the declarations page for that trailer.
If the trailer is not shown on the declarations page, the limit of liability is $500.
2. Payments for loss to a covered auto, non-owned auto, or custom parts or
equipment are subject to the following provisions:
a. If coverage applies to a non-owned auto, we will provide the broadest cover-
age applicable to any covered auto shown on the declarations page.
21
 b. If you have elected a Stated Amount for a covered auto, the Stated Amount
is the most we will pay for all loss to that covered auto, including its custom
parts or equipment.
c. Coverage for custom parts or equipment will not cause our limit of liability
for loss to an auto under this Part IV to be increased to an amount in excess of
the actual cash value of the auto, including its custom parts or equipment.
d. In determining the amount necessary to repair damaged property to its pre-
loss condition, the amount to be paid by us:
(i) will not exceed the prevailing competitive labor rates charged in the area
where the property is to be repaired and the cost of repair or replacement
parts and equipment, as reasonably determined by us; and
(ii) will be based on the cost of repair or replacement parts and equipment
which may be new, reconditioned, remanufactured or used, including, but
not limited to:
(a) original manufacturer parts or equipment; and
(b) nonoriginal manufacturer parts or equipment.
e. To determine the amount necessary to repair or replace the damaged prop-
erty as referred to in subsection 1., the total cost of necessary repair or replace-
ment may be reduced by unrepaired prior damage. Unrepaired prior damage
includes broken, cracked or missing parts; rust; dents; scrapes; gouges; and
peeling paint. The reduction for unrepaired prior damage is the cost of labor,
parts and materials necessary to repair or replace damage, deterioration, de-
fects, or wear and tear on exterior body parts, windshields and other glass,
wheels, and paint, that existed prior to the accident and that is eliminated as a
result of the repair or replacement of property damaged in the loss.
f. The actual cash value is determined by the market value, age, and condition
of the vehicle at the time the loss occurs.
3. No deductible will apply to a loss to window glass when the glass is repaired in-
stead of replaced.
4. Duplicate recovery for the same elements of damages is not permitted.
5. The following additional limits of liability apply to Pet Injury coverage:
a. The most we will pay for all damages in any one loss is a total of $1,000 re-
gardless of the number of dogs or cats involved.
b. If your pet dies in, or as a direct result of, a covered loss, we will provide a
death benefit of $1,000, less any payment we made toward veterinary ex-
penses for your pet.
c. No deductible shall apply to this coverage.

PAYMENT OF LOSS

We may, at our option:

1. pay for the loss in money; or
2. repair or replace the damaged or stolen property.

At our expense, we may return any recovered stolen property to you or to the address
shown on the declarations page, with payment for any damage resulting from the theft.
We may keep all or part of the property at the agreed or appraised value.
22
We may settle any loss with you or the owner or lienholder of the property.

NO BENEFIT TO BAILEE

Coverage under this Part IV will not directly or indirectly benefit any carrier or other
bailee for hire.

LOSS PAYABLE CLAUSE

Payment under this Part IV for a loss to a covered auto will be made according to your
interest and the interest of any lienholder shown on the declarations page or desig-
nated by you. However, if the covered auto is not a total loss, we may make payment
to you and the repairer of the auto.

The lienholder’s interest will not be protected:

1. where fraud, misrepresentation, material omission, or intentional damage resulting
in a denial of coverage by us has been committed by or at the direction of you or
any person seeking coverage; or
2. where the loss is otherwise not covered under the terms of this policy.
If this policy is cancelled, nonrenewed or voided, the interest of any lienholder under this
agreement will also terminate.

OTHER SOURCES OF RECOVERY

If other sources of recovery also cover the loss, we will pay only our share of the loss.
Our share is the proportion that our limit of liability bears to the total of all applicable
limits. However, any insurance we provide for a non-owned auto, or trailer not shown
on the declarations page, will be excess over any other collectible source of recovery
including, but not limited to:
1. any coverage provided by the owner of the non-owned auto or trailer;
2. any other applicable physical damage insurance; and
3. any other source of recovery applicable to the loss.

For any loss to which Uninsured/Underinsured Motorist Property Damage Coverage

(from this or any other policy) and this coverage both apply, you may choose the cov-
erage from which damages will be paid. You may recover under both coverages, but
only if:
1. neither one by itself is sufficient to cover the loss;
2. you pay the higher deductible amount (but you do not have to pay both deduct-
ibles); and
3. you will not recover more than the actual damages.

APPRAISAL

If we cannot agree with you on the amount of a loss, then we or you may demand
an appraisal of the loss. Within 30 days of any demand for an appraisal, each party
shall appoint a competent appraiser and shall notify the other party of that appraiser’s
23
identity. The appraisers will determine the amount of loss. If they fail to agree, the dis-
agreement will be submitted to a qualified umpire chosen by the appraisers. If the two
appraisers are unable to agree upon an umpire within 15 days, we or you may request
that a judge of a court of record, in the county where you reside, select an umpire. The
appraisers and umpire will determine the amount of loss. The amount of loss agreed
to by both appraisers, or by one appraiser and the umpire, will be binding. You will pay
your appraiser’s fees and expenses. We will pay our appraiser’s fees and expenses. All
other expenses of the appraisal, including payment of the umpire if one is selected, will
be shared equally between us and you. Neither we nor you waive any rights under this
policy by agreeing to an appraisal.

PART V—ROADSIDE ASSISTANCE COVERAGE

INSURING AGREEMENT

If you pay the premium for this coverage, we will pay for our authorized service represen-
tative to provide the following services when necessary due to a covered emergency:
1. towing of a covered disabled auto to the nearest qualified repair facility; and
2. labor on a covered disabled auto at the place of disablement.

If a covered disabled auto is towed to any place other than the nearest qualified repair
facility, you will be responsible for any additional charges incurred.

ADDITIONAL DEFINITIONS

When used in this Part V:

1. “Covered disabled auto” means a covered auto for which this coverage has
been purchased that sustains a covered emergency.
2. “Covered emergency” means a disablement that is a result of:
a. mechanical or electrical breakdown;
b. battery failure;
c. insufficient supply of fuel, oil, water, or other fluid;
d. flat tire;
e. lock-out; or
f. entrapment in snow, mud, water or sand within 100 feet of a road or highway.

EXCLUSIONS—READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN EX-

CLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART V.

Coverage under this Part V will not apply to:

1. more than three covered emergencies for any single covered auto in a six-month
period;
2. the cost of purchasing parts, fluid, lubricants, fuel, or replacement keys, or the labor
to make replacement keys;
3. installation of products or material not related to the disablement;
4. labor not related to the disablement;
24
5. labor on a covered disabled auto for any time period in excess of 60 minutes per
disablement;
6. towing or storage related to impoundment, abandonment, illegal parking, or other
violations of law;
7. assistance with jacks, levelers, airbags or awnings;
8. labor or repair work performed at a service station, garage, or repair shop;
9. auto storage charges;
10. disablement that occurs on roads not regularly maintained, sand beaches, open
fields, or areas designated as not passable due to construction, weather, or earth
movement;
11. mounting or removing of snow tires or chains;
12. tire repair;
13. disablement that results from an intentional or willful act or action by you, a rela-
tive, or the operator of a covered disabled auto;
14. any covered auto while being used in connection with ride-sharing activity;
15. any covered auto while being used in connection with a personal vehicle shar-
ing program; or
16. a trailer.

UNAUTHORIZED SERVICE PROVIDER

When service is rendered by a provider in the business of providing roadside assistance

and towing services, other than one of our authorized service representatives, we will
pay only reasonable charges, as determined by us, for:
1. towing of a covered disabled auto to the nearest qualified repair facility; and
2. labor on a covered disabled auto at the place of disablement;
which is necessary due to a covered emergency.

OTHER INSURANCE

Any coverage provided under this Part V for service rendered by an unauthorized ser-
vice provider will be excess over any other collectible insurance or towing protection
coverage.

PART VI—DUTIES IN CASE OF AN ACCIDENT OR LOSS

For coverage to apply under this policy, you or the person seeking coverage must
promptly report each accident or loss even if you or the person seeking coverage is not
at fault. You or the person seeking coverage must provide us with all accident or loss
information, including time, place, and how the accident or loss happened. You or the
person seeking coverage must also obtain and provide us the names and addresses of
all persons involved in the accident or loss, the names and addresses of any witnesses,
and the license plate numbers of the vehicles involved.

If you or the person seeking coverage cannot identify the owner or operator of a vehicle
involved in the accident, or if theft or vandalism has occurred, you or the person seeking
coverage must notify the police within 24 hours or as soon as practicable.
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A person seeking coverage must:
1. cooperate with us in any matter concerning a claim or lawsuit;
2. provide any written proof of loss we may reasonably require;
3. allow us to take signed and recorded statements, including sworn statements and
examinations under oath, which we may conduct outside the presence of you or
any other person seeking coverage, and answer all reasonable questions we may
ask as often as we may reasonably require;
4. promptly call to notify us about any claim or lawsuit and send us any and all legal
papers relating to the claim or suit;
5. attend hearings and trials as we require;
6. take reasonable steps after a loss to protect the covered auto, or any other vehicle
for which coverage is sought, from further loss. We will pay reasonable expenses
incurred in providing that protection. If failure to provide such protection results in
further loss, any additional damages will not be covered under this policy;
7. allow us to have the damaged covered auto, or any other damaged vehicle for
which coverage is sought, inspected and appraised before its repair or disposal;
8. submit to medical examinations at our expense by doctors we select as often as
we may reasonably require; and
9. authorize us to obtain medical and other records reasonably related to the injury or
damage asserted.

PART VII—GENERAL PROVISIONS

POLICY PERIOD AND TERRITORY

This policy applies only to accidents and losses occurring during the policy period
shown on the declarations page and that occur within a state, territory, or possession
of the United States of America, or a province or territory of Canada, or while a covered
auto or trailer shown on the declarations page is being transported between their ports.
Coverage is also extended to accidents and losses occurring in Mexico, but only to the
extent described under the following “Mexico Coverage—Limited” provision.

MEXICO COVERAGE—LIMITED

Coverage for your covered auto under this policy is extended to accidents occurring in
Mexico, but only if within 25 miles of the United States border. This limited extension of
coverage only applies to infrequent trips into Mexico that do not exceed 10 days at any
one time. “Infrequent trips” means less than 10 trips into Mexico during the 30-day pe-
riod leading up to and including the actual date of loss. Any insurance that we may pro-
vide under this provision shall be excess over any other valid and collectible insurance.

WARNING—READ CAREFULLY

Auto accidents in Mexico are subject to the laws of Mexico—NOT the laws of the United
States of America. Unlike the United States, the Republic of Mexico considers an auto
accident a CRIMINAL OFFENSE as well as a civil matter.
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In some cases, the coverage under this section may NOT be recognized by Mexican
authorities, and the company may not be allowed to implement this coverage at all in
Mexico. You should consider purchasing auto coverage from a licensed Mexican insur-
ance company before driving into Mexico.

The coverage under this section does not apply to trips into Mexico that exceed 25
miles from the boundary of the United States of America.

CHANGES

This policy contract, your insurance application (which is made a part of this policy as if
attached hereto), the declarations page, and all endorsements to this policy issued by
us, contain all the agreements between you and us. Subject to the following, the terms
of this policy may not be changed or waived except by an endorsement issued by us.

The premium for this policy is based on information we received from you and other
sources. You agree to cooperate with us in determining if this information is correct
and complete, and to promptly notify us if it changes during the policy period. If this
information is determined by us to be incorrect, incomplete, or if it changes during the
policy period, you agree that we may adjust your policy information and premium ac-
cordingly. Changes that may result in a premium adjustment are contained in our rates
and rules. These include, but are not limited to, you or a relative obtaining a driver’s
license or operator’s permit, or changes in:
1. the number, type or use classification of covered autos;
2. the persons who regularly operate a covered auto;
3. the persons of legal driving age residing in your household;
4. the residents in your household;
5. an operator’s marital status;
6.  your mailing address and your residence address;
7. the principal garaging address of any covered auto;
8. coverage, deductibles, or limits of liability; or
9. rating territory or discount eligibility.

The coverage provided in your policy may be changed only by the issuance of a new
policy or an endorsement by us. However, if during the policy period we broaden any
coverage afforded under the current edition of your policy without additional premium
charge, that change will automatically apply to your policy as of the date the coverage
change is implemented in your state.

If you ask us to delete a vehicle from this policy, no coverage will apply to that vehicle
as of the date and time you ask us to delete it.

DUTY TO REPORT CHANGES

You must promptly report to us all changes, including additions and deletions, in policy
information. This includes, but is not limited to, changes in:
1.  your mailing address or your residence address;
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2. the principal garaging address of any covered auto;
3. the residents in your household;
4. the persons of legal driving age residing in your household;
5. the persons who regularly operate a covered auto;
6. an operator’s marital status; or
7. the driver’s license or operator’s permit status of you or a relative.

OUR DUTIES IN THE EVENT OF A CLAIM

1. Within 15 days after we receive your written notice of claim, we must:

a. acknowledge receipt of the claim. If our acknowledgement of the claim is not in
writing, we will keep a record of the date, method, and content of our acknowl-
edgement;
b. begin any investigation of the claim; and
c. specify the information you must provide. We may request more information if
during the investigation of the claim such additional information is necessary.
2. After we receive the information we request, we must notify you in writing whether
the claim will be paid or has been denied, or whether more information is needed:
a. within 15 business days; or
b. within 30 days if we have reason to believe the loss resulted from arson.
3. If we do not approve payment of your claim or we require more time for processing
your claim, we must:
a. give the reason(s) for denying your claim; or
b. give the reason(s) we require more time to process your claim. We must either
approve or deny your claim within 45 days after our requesting more time.
4. In the event of a weather-related catastrophe or major natural disaster, as defined
by the Texas Department of Insurance, the claim handling deadlines as stated
above are extended for an additional 15 days.
5. Loss payment:
a. If we notify you that we will pay your claim, or part of your claim, we must pay
within five business days after we notify you.
b. If payment of your claim or part of your claim requires the performance of an
act by you, we must pay within five business days after the date you perform
the act.
6. Notice of settlement of liability claim:
a. We will notify you in writing of any initial offer to compromise or settle a claim
against you under the liability section of this policy. We will give you notice
within 10 days after the date the offer is made.
b.  We will notify you in writing of any settlement of a claim against you under the
liability section of this policy. We will give you notice within 30 days after the
date of the settlement.

SETTLEMENT OF CLAIMS

We may use estimating, appraisal, or injury evaluation systems to assist us in adjust-

ing claims under this policy and to assist us in determining the amount of damages,
28
expenses, or loss payable under this policy. Such systems may be developed by us or a
third party and may include computer software, databases, and specialized technology.

TERMS OF POLICY CONFORMED TO STATUTES

If any provision of this policy fails to conform to the statutes of the state listed on your
application as your residence, the provision shall be deemed amended to conform to
such statutes. All other provisions shall be given full force and effect. Any disputes as to
the coverages provided or the provisions of this policy shall be governed by the law of
the state listed on your application as your residence.

TRANSFER OF INTEREST

The rights and duties under this policy may not be transferred or assigned to another
person without our written consent. However, if a named insured shown on the dec-
larations page dies, this policy will provide coverage until the end of the policy period
for the legal representative of the named insured, while acting as such, and for persons
covered under this policy on the date of the named insured’s death.

FRAUD OR MISREPRESENTATION

This policy was issued in reliance upon the information provided on your insurance
application. We may void this policy at any time, including after the occurrence of an
accident or loss, if you:
1. made incorrect statements or representations to us with regard to any material fact
or circumstance;
2. concealed or misrepresented any material fact or circumstance; or
3. engaged in fraudulent conduct;
at the time of application. This means that we will not be liable for any claims or dam-
ages that would otherwise be covered.

Any changes we make at your request to this policy after inception will be made in reli-
ance upon information you provide. If you:
1. make incorrect statements or representations to us with regard to any material fact
or circumstance;
2. conceal or misrepresent any material fact or circumstance; or
3. engage in fraudulent conduct;
in connection with a requested change we may void the policy or reform it as it existed
immediately prior to the requested change. We may do this at any time, including after
the occurrence of an accident or loss.

When we have not voided or reformed the policy, we may still deny coverage for an
accident or loss if you, in connection with the policy application, in connection with any
requested change, or at any time during the policy period, have concealed or misrepre-
sented any material fact or circumstance or engaged in fraudulent conduct and that con-
cealment, misrepresentation, or fraudulent conduct was material to a risk we assumed.
29
We may deny coverage for an accident or loss if you or a person seeking coverage has
concealed or misrepresented any material fact or circumstance, or engaged in fraudu-
lent conduct, in connection with the presentation or settlement of a claim.

PAYMENT OF PREMIUM AND FEES

If your initial premium payment is by check, draft, electronic funds transfer, or simi-
lar form of remittance, coverage under this policy is conditioned on payment to us by
the financial institution. If the financial institution upon presentment does not honor the
check, draft, electronic funds transfer, or similar form of remittance, this policy may, at
our option, be deemed void from its inception. This means we will not be liable under
this policy for any claims or damages that would otherwise be covered if the check,
draft, electronic funds transfer, or similar form of remittance had been honored by the
financial institution. Any action by us to present the remittance for payment more than
once shall not affect our right to void this policy.

CANCELLATION

You may cancel this policy during the policy period by calling or writing us and stating
the future date you wish the cancellation to be effective.

We may cancel this policy during the policy period by mailing a notice of cancellation
to the named insured shown on the declarations page at the last known address ap-
pearing in our records.

Notice of cancellation will be mailed at least 10 days before the effective date of cancel-
lation.

We may cancel this policy for any reason if the notice is mailed within the first 59 days
of the initial policy period.

After this policy is in effect for more than 59 days, or if this is a renewal or continuation
policy, we may cancel only for one or more of the following reasons:
1. nonpayment of premium;
2. you submit a fraudulent claim; or
3. loss of driving privileges through suspension or revocation of an operator’s license
issued to you, any driver in your household, or any regular operator of a covered
auto, however, we will not cancel if you complete a Named Driver Exclusion Elec-
tion for the principal operator whose license has been suspended or revoked.

We may not cancel based solely on the fact that you are an elected official.

Proof of mailing will be sufficient proof of notice. If this policy is cancelled, coverage will
not be provided as of the effective date and time shown in the notice of cancellation. For
purposes of cancellation, this policy is neither severable nor divisible. Any cancellation
will be effective for all coverages for all persons and all vehicles.
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CANCELLATION REFUND

Upon cancellation, you may be entitled to a premium refund. However, our making or
offering of a refund is not a condition of cancellation. We charge a fully earned policy fee
for each policy period.

If this policy is cancelled, any refund due will be computed on a daily pro rata basis and
mailed no later than 15 days after the effective date of cancellation.

NONRENEWAL

If neither we nor one of our affiliates offers to renew or continue this policy, we will mail
notice of nonrenewal to the named insured shown on the declarations page at the
last known address appearing in our records. Proof of mailing will be sufficient proof of
notice. Notice will be mailed at least 30 days before the end of the policy period. We may
not refuse to renew solely because of the age of an insured person. We may also not
refuse to renew based solely on the fact that you are an elected official.

If the policy period is other than one year, we will only have the right to refuse to renew
at each anniversary of the original effective date.

AUTOMATIC TERMINATION

If we or an affiliate offers to renew or continue this policy and you or your representative
does not accept, this policy will automatically terminate at the end of the current policy
period. Failure to pay the required renewal or continuation premium when due will mean
that you have not accepted our offer.

If you obtain other insurance on a covered auto, any similar insurance provided by this
policy will terminate as to that covered auto on the effective date of the other insurance.

If a covered auto is sold or transferred to someone other than you or a relative, any
insurance provided by this policy will terminate as to that covered auto on the effective
date of the sale or transfer.

LEGAL ACTION AGAINST US

We may not be sued unless there is full compliance with all the terms of this policy.

We may not be sued for payment under Part I—Liability To Others until the obligation of
an insured person under Part I to pay is finally determined either by judgment after trial
against that person or by written agreement of the insured person, the claimant, and us.
No one will have any right to make us a party to a lawsuit to determine the liability of an
insured person.

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We may not be sued for contractual benefits under Part II(A)—Medical Payments Cov-
erage, Part II(B)—Personal Injury Protection Coverage, Part III—Uninsured/Underin-
sured Motorist Coverage, or Part IV—Damage to a Vehicle unless suit is filed within
three years of the date of the accident or loss.

If we retain salvage, we have no duty to preserve or otherwise retain the salvage for any
purpose, including evidence for any civil or criminal proceeding.

OUR RIGHTS TO RECOVER PAYMENT

We are entitled to the rights of recovery that the insured person to whom payment was
made has against another, to the extent of our payment. That insured person may be
required to sign documents related to the recovery and must do whatever else we re-
quire to help us exercise those recovery rights, and do nothing after an accident or loss
to prejudice those rights.

However, we may not assert rights of recovery:

1. against any person who was using a covered auto with your permission for any
payment made under Part IV—Damage To A Vehicle; or
2. for any payment made under Part II(B)—Personal Injury Protection Coverage. This
provision does not apply, and we will have a right of subrogation and a claim against
a person causing or contributing to an accident if, on the date of the loss, financial
responsibility as required by Chapter 601, Transportation Code, has not been es-
tablished for a motor vehicle involved in the accident and operated by that person.

When an insured person has been paid by us and also recovers from another, the
amount recovered will be held by the insured person in trust for us and reimbursed to
us to the extent of our payment. If we are not reimbursed, we may pursue recovery of
that amount directly against that insured person.

If an insured person recovers from another without our written consent, the insured
person’s right to payment under any affected coverage will no longer exist.

If we elect to exercise our rights of recovery against another, we will also attempt to
recover any deductible incurred by an insured person under this policy unless we are
specifically instructed by that person not to pursue the deductible. We have no obligation
to pursue recovery against another for any loss not covered by this policy.

We reserve the right to compromise or settle the deductible and property damage
claims against the responsible parties for less than the full amount. We also reserve the
right to incur reasonable expenses and attorney fees in pursuit of the recovery.

If the total recovery is less than the total of our payment and the deductible, we will re-
duce reimbursement of the deductible based on the proportion that the actual recovery
bears to the total of our payment and the deductible. A proportionate share of collection

32
expenses and attorney fees incurred in connection with these recovery efforts will also
reduce reimbursement of the deductible.

These provisions will be applied in accordance with state law.

JOINT AND INDIVIDUAL INTERESTS

If there is more than one named insured on this policy, any named insured may cancel
or change this policy. The action of one named insured will be binding on all persons
provided coverage under this policy.

BANKRUPTCY

The bankruptcy or insolvency of an insured person will not relieve us of any obligations
under this policy.

MUTUALS—MEMBERSHIP AND VOTING NOTICE

The insured is notified that by virtue of this policy, the insured is a member of the
Progressive County Mutual Insurance Company and is entitled as is lawfully provided in
the charter, constitution, or bylaws to only one vote, regardless of the number of policies
owned, either in person or by proxy in any or all meetings of said company. The Annual
Meetings are held in its Home Office at Austin, Texas, on the last Saturday in May, in
each year, at 10 o’clock AM.

This policy is issued subject to the constitution and bylaws and all amendments thereto
of the company, which shall form a part of this policy.

MUTUALS—PARTICIPATION CLAUSE WITHOUT CONTINGENT LIABILITY

No Contingent Liability: This policy is nonassessable. The policyholder is a member

of the company and shall participate, to the extent and upon the conditions fixed and
determined by the Board of Directors in accordance with the provisions of law, in the
distribution of dividends so fixed and determined.

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9611A TX 0815