PERSONAL AUTO POLICY - Welcome - Discovery …

1 PERSONAL auto POLICY STOCK COMPANY Discovery insurance COMPANY PO BOX 200 KINSTON, NORTH CAROLINA 28502 THESE POLICY PROVISIONS WITH THE DECLARATIONS PAGE AND ENDORSEMENT, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THIS POLICY REVISED 05/01/2016 YOUR PERSONAL auto POLICY QUICK REFERENCE Includes copyrighted material of North Carolina Rate Bureau, with its permissions. Copyright North Carolina Rate Bureau 2014 DECLARATIONS Your Name and Address Your auto or Trailer POLICY Period Coverage and Amounts of insurance Beginning On Page AGREEMENT ---------------------------------------- --- --- 1 DEFINITIONS ---------------------------------------- ------ 1 PART A LIABILITY COVERAGE------------------ 3 Insuring Agreement Supplementary Payments Exclusions Limit of Liability Out of State Coverage Financial Responsibility Required Other insurance PART B MEDICAL PAYMENTS COVERAGE-- 6 Insuring Agreement Exclusions Limit of Liability Non-Duplication Other insurance Arbitration PART C1 UNINSURED MOTORISTS COVERAGE-------------------------------- ---------------- 8

2 Insuring Agreement Exclusions Limit of Liability Our Right to Recover Payment Arbitration PART C2 COMBINED UNINSURED/UNDERINSURED MOTORIST COVERAGE-------------------------------- -------------- 13 Insuring Agreement Exclusions Limit of Liability Other insurance Our Right to Recover Payment Arbitration Beginning On Page PART D COVERAGE FOR DAMAGE TO YOUR auto ---------------------------------------- ------ 19 Insuring Agreement Transportation Expenses Salvage Charges Exclusions Limit of Liability Payment of Loss No Benefit to Bailee Other insurance Appraisal PART E- DUTIES AFTER AN ACCIDENT OR LOSS - FILING A CLAIM----------------------------- 23 General Duties Additional Duties for Uninsured Motorists Coverage Additional Duties for Coverage for Damage to Your auto PART F GENERAL PROVISIONS---------------- 24 Bankruptcy Changes Fraud in Connection with Accident or Loss Legal Action Against Us Our Right to Recover Payment POLICY Period and Territory Termination Cancellation Non-renewal Automatic Termination Other Termination Provisions Transfer of Your Interest in This POLICY Copyright North Carolina Rate Bureau 2014 NC 00 01 06 05 Page 1 of 32 This POLICY is a legal contract between you and us.

3 The PERSONAL auto POLICY is designed for easy reference; simplified to make it more understandable; and arranged to better display the available coverageREAD YOUR POLICY CAREFULLYPERSONAL auto POLICYAGREEMENTIn return for payment of the premium and subject to all terms of this POLICY , we agree with you as follows: DEFINITIONST hroughout this POLICY , you and your refer to: 1)The named insured shown in the Declarations;and2) The spouse if a resident of the same household. We , us , and our refer to the Company providing this insurance . For the purpose of this POLICY , a private passenger type auto , pickup, or van shall be deemed to be owned by a person if leased: 1)Under a written agreement to that person; and2) For a continuous period of at least 6 words and phrases are defined.

4 They are boldfaced or in quotation marks when used. Bodily injury means bodily harm, sickness, or disease, including death that results. Business means trade, profession, or occupation. Family member means a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child. Occupying means in; upon; getting in, on, out, or off. Property damage means physical injury to, destruction of, or loss of use of tangible property. Trailer means a vehicle designed to be pulled by a: 1) Private passenger auto or station wagon type; or2) Pickup truck or also means a farm wagon or farm implement while pulled by a vehicle in (1) or (2) above. Your covered auto means: 1)Any vehicle shown in the )A newly acquired )Any trailer you ) Any auto or trailer not owned by you whichused as a temporary substitute for any othervehicle described in this definition which is outof normal use because of its:a)breakdown;b)repair;c)servicing;d)l oss; ore) provision (4) does not apply to Part D Coverage For Damage to Your auto .

5 Newly acquired auto means any of the following types of vehicles you become the owner of during the POLICY period: 1)a private passenger auto or station wagon type;or2) a pickup truck or van that:a)has a Gross Vehicle Weight as specified bythe manufacturer of less than 14,000; andCopyright, North Carolina Rate Bureau, 2014 NC 00 01 06 05 Page 2 of 32 b)is not used for the delivery or transportationof goods and materials unless such use is:1) incidental to your business of installing,maintaining, or repairing furnishings orequipment; or2) for farming or coverage for a newly acquired auto is subject to the following: 1)If a newly acquired auto replaces a vehicleshown in the Declarations, it will have the samecoverage as the vehicle it replaced except thatcoverage, if any, under Part D-Coverage forDamage to Your auto , applies only if you askus to insure it within 30 days after you becomethe )If a newly acquired auto is in addition to anyshown in the Declarations, it will have thebroadest coverage we now provide for anyvehicle shown in the Declaration if you ask usto insure it within 30 days after you become )Coverage under this POLICY terminates for anynewly acquired auto on the effective date andtime of a POLICY (other than this POLICY ) issuedby us or any other company that describes suchvehicle on its declaration )

6 If you ask us to insure a newly acquired autowithin the applicable specified time perioddescribed in (1) or (2) above, any coverage weprovide for the newly acquired auto begins onthe date you become the owner. If you ask usto insure a newly acquired auto after theapplicable specified time period describedabove has elapsed, any coverage we provide forthe newly acquired auto will begin at the timeyou request the coverage. You must pay us anyadded amount due for any coverage we providefor a newly acquired auto . Transportation network platform means an online-enabled application or digital network used to connect passengers with drivers using vehicles for the purpose of providing prearranged transportation services for compensation. Copyright, North Carolina Rate Bureau, 2014 NC 00 01 06 05 Page 3 of 32 PART A LIABILITY COVERAGE INSURING AGREEMENT We will pay damages for bodily injury or property damage for which any insured becomes legally responsible because of an auto accident.

7 Damages include prejudgment interest awarded against the insured. We will settle or defend, as we consider appropriate, any claim or suit asking for these damages. In addition to our limit of liability, we will pay all defense costs we incur. Our duty to settle or defend ends when our limit of liability for this coverage has been exhausted. We have no duty to defend any suit or settle any claim for bodily injury or property damage not covered under this POLICY . Insured as used in this Part means: 1) You or any family member for the ownership, maintenance or use of any auto or trailer. 2) Any person using your covered auto . 3) For your covered auto , any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part.

8 4) For any auto or trailer, other than your covered auto , any person or organization but only with respect to legal responsibility for acts of omissions of you or any family member for whom coverage is afforded under this Part. This provision applies only if the person or organization does not own or hire the auto or trailer. SUPPLEMENTARY PAYMENTS In addition to our limit of liability: 1) We will pay the following on behalf of our insured: a) Premiums on appeal bonds and bonds to release attachments in any suit we defend. We have no duty to purchase bonds in an amount exceeding our Limit of Liability, and we have no duty to apply for or furnish these bonds; and b) All costs taxed against the insured and interest accruing after a judgment is entered in any suit we defend. Costs do not include prejudgment interest.

9 Our duty to pay post-judgment interest ends when we offer to pay that part of the judgment which does not exceed out limit of liability for the coverage. 2) We will pay the following to an insured: a) Up to $250 for the cost of bail bonds required because of traffic law violations resulting from an accident. The accident must result in bodily injury or property damage covered under this POLICY ; b) Up to $200 a day for loss of wages or salary, but not other income, because of attendance at hearings or trials at our request; c) Up to $200 for expenses incurred by an insured for Emergency first aid to others performed at the scene of an accident that involves any auto covered by this POLICY ; and d) Other reasonable expenses incurred at our request. The amount of any costs, wages, salary, or other expenses listed above that are incurred by an insured must be reported to us by such insured before we will make payment.

10 EXCLUSIONS A) We do not provide Liability Coverage for any insured: 1) Who intentionally causes bodily injury or property damage. This exclusion applies only to the extent that the limit of liability of this POLICY exceeds the minimum limit required by the financial responsibility law of North Carolina. 2) For property damage to property: a) Owned in whole or in part by that insured; or b) being transported by that insured; 3) For property damage to property; a) rented to; b) used by; or c) in the care of; that insured. This exclusion does not apply to a residence or private garage. Copyright, North Carolina Rate Bureau, 2014 NC 00 01 06 05 Page 4 of 32 4) For bodily injury to an employee of that insured during the course of employment.