Direct Car Insurance Premiums

The premium for such a Direct Car Insurance policy shall be determined on the basis of the total number of the Named Assured’s employees, regardless of the number owning or operating automobiles or motorcycles.
The rates for such a policy are shown on the Special Rate Sheets under the heading “Non-Ownership Automobile Liability,” the rates being per capita rates which vary by territory and are different for Class 1 and Class 2. The advance premium shall be calculated by applying to the number of persons in Class 1 and Class 2 the proper rates according to class and territory using the total number of employees of the Named Assured at the inception of the policy.

At the end of each month the Named Assured shall submit to the company a statement of changes in the number of employees during the month, giving (a) for Class 1 the name and location of each additional person and of each person whose employment by the Named Assured has terminated, indicating the date of each such change, and (b) for Class 2 any increase or decrease in the number of persons at each location.

The company shall retain each monthly report and premium adjustment shall be made on a pro rata basis for changes in the number of persons. The earned premium shall be calculated in the same manner as the advance premium on the basis of the number of employees employed by the Named Assured during the policy term. All premium adjustments shall be made at the rates in force on the effective date of the policy.

The minimum annual premium for Class 2 coverage shall be $20.00 public liability and $10.00 property damage, standard limits. There shall be no separate minimum premium for Class 1 coverage under such a policy.

An endorsement to the following effect shall be used:
“In consideration of the premium herein provided, it is hereby agreed between the Named Assured and the Company that this policy covers the legal liability of the Named Assured (and of the Named Assured only) for bodily injuries and property damage, as provided in the policy, arising out of accidents resulting from the use of any automobile and/or motorcycle, of the private passenger type, in the business of the Named Assured except any automobile or motorcycle which at the time of the accident is:

1. Owned in whole or in part by the Named Assured or by the individual partners thereof, if the Named Assured is a co-partnership.
2. Hired or leased by the Named Assured.
3. Registered in the name of the Named Assured.


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