CONTRACT COMMERCIAL PROPERTY

1 Page 1 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/SpecialtyContract COMMERCIAL PROPERTY OVERVIEW .. 3 APPLICATION REQUIREMENTS .. 3 List of Applications and Questionnaires .. 3 AUTHORITY .. 3 Submission Requirements .. 3 New Business Submission Requirements .. 4 Renewal Submission Requirements .. 4 Prohibited .. 5 BLANKET .. 5 BOUND BUSINESS NOTIFICATION .. 6 CAUSES OF LOSS .. 6 Basic Causes of 6 Broad Causes of Loss .. 6 Special Causes of 6 CONSTRUCTION CODES AND DEFINITIONS .. 6 Frame (Code #1).. 6 Joisted Masonry (Code #2) .. 6 Non-Combustible (Code #3) .. 7 Masonry Non-Combustible (Code #4).. 7 Modified Fire Resistive (Code #5) .. 7 Fire Resistive (Code #6) .. 7 COVERAGE AND VALUATION RATING GUIDELINES .. 7 Agreed Value .. 7 Building Ordinance or Law Building Owner .. 7 Building Ordinance or Law Building Owner (A, B, C Combined Sublimit) .. 8 Building Ordinance or Law Tenant s Improvements and 8 Building PROPERTY Coverage for Tenant s Policy.

2 9 Buildings .. 9 Business Income .. 9 Extended Period of Indemnity Rate Modification Factors .. 10 Business Personal PROPERTY (Contents) .. 10 COMMERCIAL PROPERTY Extension .. 10 Debris Removal Additional Insurance .. 11 Discharge From Sewer, Drain or Sump (Not Flood-Related).. 11 Equipment Breakdown .. 12 First 14 Functional Building Valuation/Functional Business Personal PROPERTY Valuation .. 16 Glass .. 16 Historic Register Buildings .. 16 CONTRACT COMMERCIAL PROPERTY Underwriting Guide Page 2 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/SpecialtyHousehold Personal PROPERTY .. 16 Legal Liability Coverage .. 16 Outdoor Signs .. 17 Outdoor Trees, Shrubs and Plants .. 17 Peak Season .. 17 Personal PROPERTY of Others .. 18 PROPERTY in the Open .. 18 Replacement Cost .. 18 Solar Panels .. 18 Spoilage .. 18 Sprinkler Leakage .. 19 Tenant s Improvements and Betterments .. 19 Theft .. 19 Triple Net Lease .. 20 Utility Services .. 20 Vandalism And Malicious Mischief.

3 21 Wildfire Conditions .. 21 Windstorm or Hail .. 21 CREDITS & SURCHARGES .. 22 FORMS .. 22 Fill-In Forms and Endorsements .. 22 Required Non-Admitted Forms and Endorsements .. 23 Optional Forms and Endorsements .. 24 INSPECTIONS .. 26 LIMITS .. 26 MINIMUM POLICY PREMIUM .. 26 PROBABLE MAXIMUM LOSS (PML) .. 27 RATES .. 27 SIGNATURE-REQUIRED ENDORSEMENTS .. 27 TERRITORIES .. 27 WARRANTY ENDORSEMENTS .. 29 CONTRACT COMMERCIAL PROPERTY Underwriting Guide Page 3 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/SpecialtyOVERVIEW Our intent is to provide general guidelines for the different classes and coverages that are within your authority. It is not possible to address every coverage situation in this guide. Please contact your E&S/Specialty underwriter for questions and referrals. If a risk is eligible for one of our programs, program guidelines and rates must be used for Liability and PROPERTY sections, subject to state exceptions. Submit any deviations.

4 All guidelines and requirements specified in the Classification and Topical Guide, CONTRACT Underwriting Guides and CONTRACT State Information pages apply to program business, unless otherwise indicated in the individual programs. Use ExpressConnect to submit, rate, quote, issue and endorse CONTRACT P&C programs, ISO, Inland Marine and Crime. CONTRACT COMMERCIAL P&C business, whether Program or ISO, is to be written on a non-admitted basis, subject to state exceptions. The applicable companies are: STATE COMPANY All States except Ohio, Arizona and Delaware Scottsdale Insurance Company (SIC) Ohio Scottsdale Surplus Lines Insurance Company (SSLIC) Arizona & Delaware Scottsdale Indemnity Company (SIN) APPLICATION REQUIREMENTS Application requirements are as follows, unless otherwise indicated in the Classification and Topical Guide, program(s), or as requested by an E&S/Specialty Underwriter. All New Business: Use applicable ACORD Application(s), along with supplemental applications as required per program or the Classification and Topical Guide.

5 Renewals: New completed application(s) is required every three years, or if there has been a material change to the risk. New Locations: If a new location is added mid-term, a PROPERTY application is required for that location. List of Applications and Questionnaires Applications and questionnaires can be accessed under the Forms and Applications/Questionnaires section of the Underwriting Tools Home page. There are also links to program and class specific applications and questionnaires within the Classification and Topical Guide and programs. AUTHORITY Submission Requirements When submitting items for approval, we must be furnished the following information which will allow us to underwrite and improve our response time on submissions: Completed ACORD application(s) and supplemental application(s)/questionnaire(s), if applicable Detailed description of operations and explanation of each named insured ExpressConnect rating or rating worksheets if not rated in ExpressConnect CONTRACT COMMERCIAL PROPERTY Underwriting Guide Page 4 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/Specialty Prior loss experience with detailed description of losses, including loss prevention measures on any one loss of $10,000 or greater Prior carrier and, if possible, historical premium by line of business Reason for submission Target pricing Date quotation is needed New Business Submission Requirements PROPERTY premium in excess of $35,000 Risks with a loss in excess of $50,000, or more than two losses in the last three years regardless of amount Accounts indicated as S (Submit)

6 In the Classification and Topical Guide or as submit in a program Any deviation to a program Risks that do not fall within your specific binding authority (The total amount of coverage for PROPERTY and Inland Marine coverages should not exceed your individual binding authority) Any risk not insured to the proper coinsurance amount, without coinsurance or on an agreed value basis Risks with any explosive substance exposure Any risk that has sustained a mold loss for which proof can be obtained that 100% remediation has occurred Risks with existing PROPERTY damage Equipment Breakdown Coverage and/or Limited Equipment Breakdown Coverage in CFS-20s ( COMMERCIAL PROPERTY Extension) if indicated as submit in the Classification/Topical Guide or individual programs Any account with prior term written by E&S/Specialty through another GA, refer to Broker of Record Guidelines in the CONTRACT General Information Guide Renewal Submission Requirements Three annual policy terms since an E&S/Specialty underwriter approved the risk Exposures or operations changes Forms that need to be amended PROPERTY premium in excess of $35,000 Accounts having more than two PROPERTY losses regardless of amount, or any one loss over $50,000 in the last three years PROPERTY PML exceeding your agency binding authority Policies that you have received notice from your underwriter to submit prior to renewing Programs or classifications that specifically require annual submission, regardless of prior E&S/Specialty underwriter approval Accounts requiring pricing lower than the most current ISO rates, Program rates.

7 Or rates previously quoted by an E&S/Specialty underwriter Rewrites with a gap in coverage (Not applicable to seasonal accounts or special events. You may quote these, if the risk has not changed.) CONTRACT COMMERCIAL PROPERTY Underwriting Guide Page 5 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/Specialty Expiring account not written by your office (Submission with Broker of Record Letter is necessary.) Any policy with Facultative Reinsurance Equipment Breakdown Coverage and/or Limited Equipment Breakdown Coverage in CFS-20s ( COMMERCIAL PROPERTY Extension) if indicated as submit in the Classification/Topical Guide or individual programs Prohibited Any risk with a mold loss for which proof cannot be obtained that 100% remediation has occurred Buildings condemned or scheduled for demolition Any risk in bankruptcy or receivership, other than Chapter 11 Risks in Chapter 11 bankruptcy are acceptable and within agency authority where both of the following conditions exist: The named insured is the trustee/debtor named on the filing.

8 AND The named insured has access to and control over funds for insurance and PROPERTY maintenance Crop coverage Earthquake coverage except where specifically allowed by program or state Flood coverage Inflatable or air supported buildings, tents, canopies, or domes Any panel, load box, or electrical wiring system with ongoing or past recall Attachment of CP 04 09, Increase in Rebuilding Expenses Following Disaster (Additional Expense Coverage on Annual Aggregate Basis) Classifications indicating a P (Prohibited) in the Classification and Topical Guide or prohibited in a program, unless approved by an E&S/Specialty underwriter Exposures indicated as prohibited in the Classification/Topical Guide or individual programs Business Income coverage not in conjunction with building or business personal PROPERTY coverage Electrical Systems Containing: Aluminum wiring that is not pigtailed with copper Fuses Knob & Tube wiring Federal Pacific /Stab-Lok panels Zinsco/GTE Sylvania panels Murray/Siemen panels Challenger panels BLANKET Blanket insurance is available subject to the following: Blanket each coverage separately, , Buildings, Business Personal PROPERTY , Business Income.

9 CONTRACT COMMERCIAL PROPERTY Underwriting Guide Page 6 Revised 2-23 CONTRACT COMMERCIAL PROPERTY UNDERWRITING GUIDEE&S/Specialty Buildings must be insured to value ACORD 140 along with ACORD 139 Statement of Values is required Minimum 90% coinsurance Minimum $1,000 deductible Use standard PROPERTY coverage forms The PROPERTY Supplemental Declarations page must show the word blanket next to the Limit of Insurance. UTS-SP-3 Schedule of Locations must include the number of buildings, addresses, and occupancies. Rating Average rate can be used subject to current state guidelines and minimum rates. Wind/hail deductibles written on a percentage basis will be calculated based on the statement of values on file. BOUND BUSINESS NOTIFICATION You are not required to advise us of binding, unless requested by us with your quote approval. If we do request notification, please provide policy number, effective date and premium. CAUSES OF LOSS Basic Causes of Loss Use form CP 10 10.

10 Broad Causes of Loss Use form CP 10 20. To be eligible, building must be 35 years of age or newer, or must have all electrical, heating, plumbing and roofing replaced within the past 35 years. Updates must be verified on the application or inspection, if required. Special Causes of Loss Available with theft coverage, use form CP 10 30; without theft coverage, also attach form CP 10 33. To be eligible, building must be 35 years of age or newer, or must have all electrical, heating, plumbing and roofing replaced within the past 35 years. Updates must be verified on the application or inspection, if required. CONSTRUCTION CODES AND DEFINITIONS To ensure consistency, the following ISO Fire and Allied Lines construction codes and definitions will be used in underwriting and pricing the PROPERTY line of business: Frame (Code #1) Buildings where the exterior walls are wood or other combustible materials including construction where combustible materials are combined with other materials such as brick veneer, stone veneer, wood iron-clad, or stucco on wood.