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OREGON MUTUAL INSURANCE COMPANY PERSONAL UMBRELLA POLICY PROGRAM INDEX

General Description .................................................................................................................................................... UP-1 Application .................................................................................................................................................................. UP-1 Change Procedures.................................................................................................................................................... UP-1 Cancellation of Insurance ........................................................................................................................................... UP-1 Rounding Rule ............................................................................................................................................................ UP-2 Ineligible Exposures.................................................................................................................................................... UP-2 General Program Offering .......................................................................................................................................... UP-2 Rating Territories ........................................................................................................................................................ UP-3 Charges and Rates for Certain Personal Umbrellas Basic Charge ........................................................................... UP-3 Personal Umbrella (not farm risks) – Credits for Self-Insured Retention Increase .................................................... UP-3 Personal Lines Umbrella Increased Limits ................................................................................................................. UP-4

June 2007

Nevada

Index-i

OREGON MUTUAL INSURANCE COMPANY PERSONAL UMBRELLA POLICY PROGRAM

GENERAL DESCRIPTION The following information is a general description. You should refer to the policy for an explanation of definitions, terms, limitations, and exclusions. The Personal Umbrella provides excess liability coverage over and above the limit provided by the underlying personal line policies. However, the policy does not provide Uninsured and Underinsured Motorist Coverage. First dollar defense coverage is provided. We offer the Personal Umbrella so that the insured may purchase higher liability limits needed. In order to keep our underwriting costs down and retain underwriting control, we require that we write all of the eligible underlying coverage in the Oregon Mutual Insurance Company. If any of the underlying coverage requirements can not be met, it may be possible to issue an Umbrella on a limited basis. We will normally either exclude the coverage that is not in our underlying or issue the Umbrella on a Following Form basis over our underlying. An exception to this requirement is; if we do not write the underlying coverage, we sometimes can make arrangements to extend our Umbrellas over acceptable underlying coverage. However, it may take extra time to make the necessary arrangements with our reinsurers before we can bind coverage.

APPLICATION We must have fully completed applications. Even though we write the underlying coverage, the Umbrella application must be completed in detail and signed by the prospective policyholder. Completion of the application does not bind coverage. We also require that the prospective policyholder sign a disclosure statement acknowledging that no Uninsured and Underinsured Motorist Coverage is provided under the Umbrella policy. A new application and Uninsured and Underinsured disclosure statement, with updated information and signature, will be required every 3 years in order to continue coverage. The new application will be requested from the Regional Office. An underwriter may require an updated application prior to 3 years if there are concerns regarding specific risk exposures. All Umbrellas (other than some initial term) are written on a one-year policy basis.

CHANGE PROCEDURES Additional motor vehicles, drivers, property, watercraft or liability exposures must be reported as soon as practicable but no later than the annual anniversary.

CANCELLATION OF INSURANCE If the company or insured cancels the policy, the earned premium will be computed on a pro-rata basis.

June 2007

Nevada

UP-1

OREGON MUTUAL INSURANCE COMPANY PERSONAL UMBRELLA POLICY PROGRAM

ROUNDING RULE All premiums shown on the policy and endorsements shall be rounded to the nearest whole dollar. A premium of fifty cents or more shall be rounded to the next higher whole dollar.

INELIGIBLE EXPOSURES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

15.

Any automobile, snowmobile, or watercraft used for organized racing, stunt, speed, exhibition, or demolition activity. Failure to provide reason(s) why underlying coverage was placed for any family member in a non-standard, substandard, or assigned risk market. Any owned or non-owned aircraft or balloon exposure. Any person who has been sued for libel or slander or has had unfavorable newspaper or comparable publicity. Any risk whose primary coverage is issued by any carrier with a Best’s Policyholder’s Rating of less than A. Any farming or business exposure other than incidental exposures. Any watercraft with a combined engine rating speed over 45 MPH and any boat over 40 feet in length. Jet boats, jet skis, wave runners, jet drives, and airboats. Labor Union officials. Newspaper reporters, editors or publishers. Public Lecturers, Politicians or Authors. Risks that cannot be covered under a personal lines policy. Risks with more than 4 rental units. Target risks such as: actors, actresses, television and radio personalities, broadcasters or telecasters, professional athletes, entertainers, celebrities, law enforcement persons, people with a prominent position, foreign residents living in this country temporarily, etc. We cannot insure motorcycles, trail bikes, ATV’s, dirt bikes, dune buggies, or other similar recreational vehicles under the Personal Umbrella policy. These vehicles are to be identified on the application so that the policy can be issued with the exclusion of these vehicles.

GENERAL PROGRAM OFFERING 1. 2. 3. 4.

5.

UP-2

Contract – Full Umbrella, 1st dollar defense Self-Insured Retention - $250 Minimum Premium - $150 in Territory I and Territory II Underlying limits requirements: a. Automobile Liability - $500,000/$500,000 BI & $100,000 PD or $500,000 CSL. b. Home and Dwelling Fire Personal Liability - $300,000 CSL without swimming pool or waterfront exposure, $500,000 CSL with swimming pool, or waterfront exposure. c. Watercraft Liability - $500,000 CSL. No Uninsured/Underinsured umbrella vehicle coverage is provided. All applicants and/or policyholders must review and sign disclosure statement M0930UN.

Nevada

August 2006

OREGON MUTUAL INSURANCE COMPANY PERSONAL UMBRELLA POLICY PROGRAM

RATING TERRITORIES Territory I All Other

Territory II City of Las Vegas.

CHARGES AND RATES FOR CERTAIN PERSONAL UMBRELLAS BASIC CHARGE Annual Premium

The basic Personal Umbrella charge which includes the charge for the insureds primary residence and one private passenger auto.

Territory I

Territory II

$100

$125

In Addition to the Basic Premium Charge 1.

Each additional automobile or recreation vehicle

$36

$36

2.

Youthful drivers (operator under 25 years of age)

$56

$80

3.

Each additional owner occupied dwelling

$6

$6

4.

Each one family dwelling rented to others

$9

$9

5.

Each two family dwelling rented to others

$17

$17

6.

Each three family dwelling rented to others

$26

$26

7.

Each four family dwelling rented to others

$34

$34

8.

Incidental office exposure (Refer to Company)

$31

$31

9.

Business pursuits (Refer to Company)

$31

$31

10. Incidental Farming (Refer to Company)

$31

$31

11. Each watercraft 26 feet or under in length

$38

$38

12. Each watercraft in excess of 26 feet in length

(Refer to Company)

13. Swimming Pool, hot tub, or waterfront exposures

$31

$31

PERSONAL UMBRELLA (not farm risks) – CREDITS FOR SELF-INSURED RETENTION INCREASE Higher SIR’S are available for the Personal Umbrella for a reduction in premium:

August 2006

SIR

Annual Credit

$ 500

$2

$1,000

$3

$2,000

$4

$5,000

$5

Nevada

UP-3

OREGON MUTUAL INSURANCE COMPANY PERSONAL UMBRELLA POLICY PROGRAM

PERSONAL LINES UMBRELLA INCREASED LIMITS

UP-4

Limit of Liability

Increased Limit Factor

Minimum Premium

$1,000,000

1.00

$150 Terr. I and Terr II

$2,000,000

1.75

$300

$3,000,000

2.25

$450

$4,000,000

2.75

$600

$5,000,000

3.25

$750

Nevada

August 2006