AMERICAN RELIABLE INSURANCE COMPANY FLORIDA PERSONAL WATERCRAFT PROGRAM GENERAL RULES RULE 1. ELIGIBILITY: This program is applicable to personal watercraft such as Jet Ski, Wet Bike and Wave Runner. Unit must be used for pleasure only; no commercial or rental usage. The unit may not be modified in any way and may not be used for racing. RULE 2. DESCRIPTION OF COVERAGES: Coverage Type: All Risk Physical Damage Bodily Injury and Property Damage Liability Medical Payments Watersports Liability Physical Damage Coverage for Trailer Accessory Coverage Uninsured Boat owners RULE 3. POLICY TERM: Policy term is six (6) months or twelve (12) months. RULE 4. CHANGES: All changes requiring adjustments of premium shall be computed pro rata. If an outstanding policy is amended and results in an additional premium of less than $5, such additional premium may be waived. If the amendment results in a return premium of less than $5, such return premium may be waived, except that the actual return premium of less than $5 shall be allowed at the request of the insured. RULE 5. MINIMUM PREMIUM: The minimum written and retained premium shall be $100 per policy. This minimum premium rule shall not apply if the policy is cancelled by the Company (this covers a seasonal product not used 12 months out of the year). RULE 6. WHOLE DOLLAR PREMIUM: The premium for each exposure shall be rounded to the nearest whole dollar. A premium involving $.50 or more shall be rounded to the next highest dollar. RULE 7. PAYMENT OPTIONS/INSTALLMENT BILLING: Any policyholder may be given the opportunity to pay by installments. All installments will include a $2 fully earned premium installment charge. Any policy may be paid in full at the time of application. RULE 8. ACCESSORY/TRAILER COVERAGE: Actual Cash Value Collision and Other Than Collision (OTC) coverages are offered at premium charges as shown in the rate section. A description at each accessory (including special paint jobs) and the value of each must be indicated with the application. RULE 9. AMOUNT OF INSURANCE The amount of insurance shall be rounded to the nearest thousand. RULE 10. FIXED EXPENSE FEE: A fixed expense fee of $25 shall be charged on all new and renewal policies. RULE 11. CANCELLATIONS: When a policy is cancelled at the request of the insured, the unearned premium shall be computed at 90% of pro rata. An exception to this rule is that a pro rata cancellation shall be allowed as to any unit if the insurance on a unit in substitution there of is written in the same company within 30 days of the date of cancellation, or if a policy is issued without lapse of time on the same unit to a new owner thereof, or if cancellation is effected as a result of a repossession under any conditional sale, mortgage, lease or lien agreement. If a unit is cancelled from a policy, the policy remaining in force on other units, cancellation shall be on a pro rata basis. Under payment of a total or constructive total loss under physical damage coverage, unearned premium shall be made pro rata for all physical damage premiums including the premium for the coverage under which the loss was paid. If the insured enters the Armed Forces of the United States of America, the unearned premium will be computed pro rata. If a policy or form of coverage is canceled by the Company, the unearned premium shall be computed pro rata. RULE 12. DEFINITIONS: PERSONAL WATERCRAFT A vessel certified for maximum capacity of four people, maximum overall length of 16 feet, have an inboard engine and propelled by impeller drive/jet drive. TRAILER Limited only to trailers specifically designed for transportation of personal watercraft, includes attached winch and other permanently attached equipment. ACCESSORIES Any optional, added equipment, accessories or parts or utility trailers. Or any special paint or finishes, or other custom work not included as “standard” by the manufacturer even if originally installed at the factory or dealer.
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