Asurion Rate Filing

SERFF Tracking #: ASTP-128484141
State Tracking #: 12-5431; 12-5432
Company Tracking #: LMG-IM-CLRI-0412-F/R
State:
California
TOI/Sub-TOI:
09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)
First Filing Company:
Product Name:
LMG-IM-CLRI-04/2012-F/R
Liberty Insurance Underwriters Inc., ...
Project Name/Number: /
Filing at a Glance
Companies:
Liberty Insurance Underwriters Inc.

Liberty Mutual Insurance Company
California
09.0 Inland Marine
09.0007 Communication Equipment (Cellular Telephones)
New Program
06/23/2012
ASTP-128484141
Closed-Rejected
12-5431; 12-5432
Rejected at Intake
LMG-IM-CLRI-0412-F/R
Product Name:
State:
TOI:
Sub-TOI:
Filing Type:
Date Submitted:
SERFF Tr Num:
SERFF Status:
State Tr Num:
State Status:
Co Tr Num:
Effective Date
Requested (New):
Effective Date
Requested (Renewal):
Author(s):
Reviewer(s):
Disposition Date:
Disposition Status:
Effective Date (New):
Effective Date (Renewal):
08/01/2012
10/01/2012
Renee Pace
Sharon Doce (primary)
07/09/2012
Rejected
07/09/2012
PDF Pipeline for SERFF Tracking Number ASTP-128484141 Generated 04/17/2015 11:16 PM
State Tracking #: 12-5431; 12-5432
State:
California
TOI/Sub-TOI:
Product Name:
General Information
Project Name:
Project Number:
Reference Organization:
Reference Title:
Filing Status Changed: 07/09/2012
State Status Changed: 07/09/2012
Created By: Renee Pace
Corresponding Filing Tracking Number:
Status of Filing in Domicile: Pending

Domicile Status Comments:
Reference Number:
Advisory Org. Circular:
Deemer Date:
Submitted By: Renee Pace
Filing Description:
Liberty Mutual Insurance Company and Liberty Insurance Underwriters Inc. (the Company) are filing, for your review and
approval, a new Portable Electronics Commercial Inland Marine Insurance Policy.
The Companys Portable Electronics Commercial Inland Marine Insurance Policy program provides coverage for insured
Portable Electronic Devices. Please see the enclosed filing memorandum for further details.
Please contact me if you have additional questions.
Sincerely,
Renee Pace
734-316-2875
Company and Contact

Filing Contact Information
Renee Pace,
300 S. Wacker Dr.,
Chicago, IL 60606
renee.pace@asurion.com
734-316-2875 [Phone]
State Tracking #: 12-5431; 12-5432
State:
California
TOI/Sub-TOI:
Product Name:
Filing Company Information

(This filing was made by a third party - asuriontpf)
CoCode: 23043
175 Berkeley St.
Group Code: 111
Boston, MA 02117
Group Name: Liberty Mutual
Group
(617) 357-9500 ext. [Phone]
FEIN Number: 04-1543470
Liberty Insurance Underwriters Inc.
55 Water St., 18th Floor
New York, NY 10041
(212) 208-4100 ext. [Phone]
CoCode: 19917
Group Code: 111
Group Name: Liberty Mutual
Group
FEIN Number: 22-2227331
State of Domicile:
Massachusetts
Company Type:
State ID Number:
State of Domicile: Illinois

Company Type:
State ID Number:
Filing Fees
Fee Required?
No
Retaliatory?
No
Fee Explanation:
State Specific
Variance Requested? (Yes/No): No
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Project Name/Number:
Correspondence Summary
Dispositions
Status
Rejected
Created By
Sharon Doce
Created On
07/09/2012
Date Submitted
07/09/2012
Objection Letters and Response Letters

Objection Letters
Status
Pending
company
response
Created By
Sharon Doce
Response Letters
Created On
06/26/2012
Date Submitted
06/26/2012
Responded By
Created On
Date Submitted
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Disposition
Disposition Date: 07/09/2012
Effective Date (New): 07/09/2012
Effective Date (Renewal):
Status: Rejected
Comment:
This filing was received by the Rate Filing Bureau on 6/25/2012. However, we have been unable to process your submission because it is incomplete and/or contains
incorrect information. Therefore, as of the date of this notice, this application is rejected for incompleteness.
The application is rejected for the following reason(s):
1) Prior Approval Rate Applications must be submitted in both Excel and PDF format.
2) For all rate filings received on or after June 1st, the data provided must be for the most recent year.
Be advised that you may file a new separate application.
If you wish to contest the determination that the application is incomplete, you must request a Rejection Hearing. Your request must be received by the Department of
Insurance within ten (10) days of the rejection date. The request for hearing, and four copies, should be directed to the Department of Insurance as follows:
Ms. Elizabeth Mohr, Assistant Chief Counsel
Rate Enforcement Bureau
California Department of Insurance
45 Fremont Street, 21st Floor
San Francisco, CA 94105
The scope of Hearing is limited to the completeness of the application as filed with the Department.
Please refer to the California Code of Regulations, Title 10, Chapter 5, Subchapter 4.8, Article 8, Sections 2648.1 2648.4 for the specific procedures regarding the
completeness determination hearing.
Rate data does NOT apply to filing.
Overall Rate Information for Multiple Company Filings

Overall Percentage Rate Indicated For This Filing
0.000%
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Overall Percentage Rate Impact For This Filing

Effect of Rate Filing-Written Premium Change For This Program
Effect of Rate Filing - Number of Policyholders Affected
Schedule
Supporting Document
Supporting Document
Supporting Document
Supporting Document
Supporting Document
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
Form
0.000%
$0
0
Schedule Item
Schedule Item Status
Prior Approval Rate Application
Third Party Authorizations
Forms List
Exhibits
Explanatory Memorandum
Commercial Inland Marine - Scheduled - Covered
Property
Portable Electronics Coverage Insurance Policy
Declarations Page
Account Based Coverage Endorsement A
Account Based Coverage Endorsement B
Account Based Coverage Endorsement C
Account Based Coverage Endorsement D
Device and Account Based Coverage Endorsement A
Device and Account Based Coverage Endorsement B
Device and Account Based Coverage Endorsement C
Device and Account Based Coverage Endorsement D
Electrical and Mechanical Breakdown Coverage
Endorsement
Account Based Coverage Endorsement E
Account Based Coverage Endorsement F
Device and Account Based Coverage Endorsement E
Device and Account Based Coverage Endorsement F
Declining Deductible Endorsement
Deductible By Peril Endorsement
Virus Coverage Endorsement
Battery Coverage Endorsement
Standard Software Schedule Endorsement
Commercial Inland Marine - Standard Software Schedule
Public Access
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Schedule
Form
Rate
Rate
Schedule Item
Declaration Change Endorsement
State Exception Page
Countrywide Rating Manual
Schedule Item Status
Public Access
Yes
Yes
Yes
State Tracking #: 12-5431; 12-5432
State:
California
TOI/Sub-TOI:
Product Name:
Objection Letter
Objection Letter Status
Objection Letter Date
Submitted Date
Respond By Date
Pending company response

06/26/2012
06/26/2012
Dear Renee Pace,
Introduction:
Objection 1
- Prior Approval Rate Application (Supporting Document)
Comments: 1. Please submit Prior Approval Rate Application in the original Excel format.
2. Provide data for the most recent year, 2011.
Thank you for your prompt attention to this request.
Conclusion:
Sincerely,
Sharon Doce
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Form Schedule
Item
No.
1
Form
Number
CLRI 003
(04/2012)
Edition
Date
04/2012
Form Form
Type Action
OTH New
CLRI 005
(04/2012)
04/2012
PCF
New
0.000
CLRI 006
(04/2012)
04/2012
DEC
New
0.000
Account Based Coverage CLRI 007

Endorsement A
(04/2012)
04/2012
END
New
0.000

Endorsement B
(04/2012)
04/2012
END
New
0.000

Endorsement C
(04/2012)
04/2012
END
New
0.000

Endorsement D
(04/2012)
04/2012
END
New
0.000
Device and Account

Based Coverage
Endorsement A
CLRI 011
(04/2012)
04/2012
END
New
0.000
Device and Account

Based Coverage
Endorsement B
CLRI 012
(04/2012)
04/2012
END
New
0.000
10
Device and Account

Based Coverage
Endorsement C
CLRI 013
(04/2012)
04/2012
END
New
0.000
2
3
Schedule Item Form

Status
Name
Commercial Inland Marine
- Scheduled - Covered
Property
Portable Electronics
Coverage Insurance
Policy
Declarations Page
Action Specific
Data
Readability
Score
0.000
Attachments
CLRI 003 Covered Property
CL 20120403.pdf
CLRI 005 - LMIC
Retail Policy CL
20120403.pdf
CLRI 006 - LMIC
Retail Dec CL
20120403.pdf
CLRI 007 - ABC
End A - All LN RT
CL 20120403.pdf
CLRI 008 - ABC
End B - All LN
Bonus CL
20120403.pdf
CLRI 009 - ABC
End C - Enroll RT
CL 20120403.pdf
CLRI 010 - ABC
End D - Enroll
Bonus CL
20120403.pdf
CLRI 011 ABC_DBC End A
- All LN RT CL
20120403.pdf
CLRI 012 ABC_DBC End B
- All LN Bonus
CL 20120403.pdf
CLRI 013 ABC_DBC End C
- Enroll RT CL
20120403.pdf
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Item
No.
11
Form
Number
CLRI 014
(04/2012)
Edition
Date
04/2012
Form Form
Type Action
END New
CLRI 015
(04/2012)
04/2012
END
New
0.000
CLRI 016
(04/2012)
04/2012
END
New
0.000
14

Endorsement F
(04/2012)
04/2012
END
New
0.000
15
Device and Account

Based Coverage
Endorsement E
CLRI 018
(04/2012)
04/2012
END
New
0.000
16
Device and Account

Based Coverage
Endorsement F
CLRI 019
(04/2012)
04/2012
END
New
0.000
17
Declining Deductible
Endorsement
CLRI 020
(04/2012)
04/2012
END
New
0.000
18
Deductible By Peril
Endorsement
CLRI 021
(04/2012)
04/2012
END
New
0.000
19
Virus Coverage
Endorsement
CLRI 022
(04/2012)
04/2012
END
New
0.000
20
Battery Coverage
Endorsement
CLRI 023
(04/2012)
04/2012
END
New
0.000
12
13
Schedule Item Form

Status
Name
Device and Account
Based Coverage
Endorsement D
Electrical and Mechanical

Breakdown Coverage
Endorsement
Account Based Coverage
Endorsement E
Action Specific
Data
Readability
Score
0.000
Attachments
CLRI 014 ABC_DBC End D
- Enroll Bonus CL
20120403.pdf
CLRI 015 - M and
E Endorsement
CL 20120403.pdf
CLRI 016 - ABC
End E- All LN CL
- Non-Pooled
20120403.pdf
CLRI 017 - ABC
End F - Enroll
CL- Non-Pooled
20120403.pdf
CLRI 018 ABC_DBC End E
- All LN CL - NonPooled
20120403.pdf
CLRI 019 ABC_DBC End F
- Enroll CL - NonPooled
20120403.pdf
CLRI 020 Declining
Deductible CL
20120403.pdf
CLRI 021 - Peril
Deductible CL
20120403.pdf
CLRI 022 - Virus
Coverage End
CL 20120403.pdf
CLRI 023 Battery Coverage
End CL
20120403.pdf
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Item
No.
21
Schedule Item Form

Status
Name
Standard Software
Schedule Endorsement
Form
Number
CLRI 024
(04/2012)
Edition
Date
04/2012
Form Form
Type Action
END New
22
Commercial Inland Marine CLRI 025

- Standard Software
(04/2012)
Schedule
04/2012
OTH
New
0.000
23
Declaration Change
Endorsement
04/2012
END
New
0.000
CLRI 026
(04/2012)
Form Type Legend:

Application/Binder/Enrollment
ABE
Bond
BND
Canc/NonRen Notice
CNR
Disclosure/Notice
DSC
Election/Rejection/Supplemental Applications
ERS
ADV
CER
DEC
END
OTH
Action Specific
Data
Advertising
Certificate
Declarations/Schedule
Endorsement/Amendment/Conditions
Other
Readability
Score
0.000
Attachments
CLRI 024 - Other
Standard
Software
Schedule End CL
20120403.pdf
CLRI 025 Standard
Software
Schedule CL
20120403.pdf
CLRI 026 Declaration
Change
Endorsement CL
20120403.pdf
Endorsement Number:
Endorsement Effective Date:
Modifies Policy Number:
Issued to First Named Insured:
[LIBERTY MUTUAL INSURANCE COMPANY]

[LIBERTY INSURANCE UNDERWRITERS INC.]
Commercial Inland Marine Scheduled Covered Property
This schedule provides supplementary information to be used with the PORTABLE ELECTRONICS
COVERAGE INSURANCE POLICY to which it is attached.
Type of Coverage: _________________________________________________________
Description of Property Covered
CLRI 003 (04/2012)

2012 Asurion Insurance Services, Inc.
Monthly Premium Rate
Deductible
Maximum Limit
Page 1 of 1
[LOGO]
[insert address]
[insert toll free number]
PORTABLE ELECTRONICS COVERAGE INSURANCE POLICY
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and
what is and is not covered.
The words ''we,'' ''us'' and ''our'' refer to the Insurer shown in the Declarations that is providing this insurance.
The terms you and your mean, as the context requires, the First Named Insured or any Additional Insured or
both.
The word "Agent" refers to the Agent shown in the Declarations.
The term "Authorized Service Center" means the service center providing repair and replacement services on our
behalf.
The term Vendor means the Vendor shown in the Declarations, who is the First Named Insured, providing the
Covered Property.
A. COVERAGE
In exchange for premium paid when due, we agree to provide the coverage as stated in this policy on a month
to month basis, provided that any covered damage or loss to the Covered Property is sustained while your
coverage is in effect.
1. Who Is Covered
a. First Named Insured
The First Named Insured is the First Named Insured shown in the Declarations.
b. Additional Insureds
The First Named Insured has the right to request Additional Insured status for a customer for his or
her interest in Covered Property which he, she or it owns (references herein to Insured refer
collectively to First Named Insured and Additional Insured). Requests for coverage for Additional
Insureds are subject to our approval.
2. Covered Property
Covered Property means the Covered Property shown in the Declarations.
3. Coverage Period
Coverage is provided for the policy period shown in the Declarations subject to Section G.4.b.
4. Coverage Territory
We insure the Covered Property:
a. {If coverage territory a is selected in the Declarations, then the following language will appear: when
it is present in the United States or its territories and Canada. We do not insure the Covered Property
when it is outside the United States or its territories or Canada;}
or
b. {If coverage territory b is selected in the Declarations, then the following language will appear:
wherever it is located in the world.}
We may require any claims occurring outside the United States or its territories to be processed in the
United States.
5. Covered Causes of Loss
CLRI 005 (04/2012)
Page 1 of 9
a. {If Plan 1 is selected in the Declarations, then the following language will appear: Covered Causes
of Loss means risks of being directly damaged, except as limited or excluded elsewhere in this
policy}; or
b. {If Plan 2 is selected in the Declarations, then the following language will appear: Covered Causes
of Loss means risks of being lost or stolen, except as limited or excluded elsewhere in this policy}; or
c. {If Plan 3 is selected in the Declarations, then the following language will appear: Covered Causes
of Loss means risks of mechanical or electrical breakdown or being directly damaged, except as
limited or excluded elsewhere in this policy}; or
d. {If Plan 4 is selected in the Declarations, then the following language will appear: Covered Causes
of Loss means risks of being lost, stolen or directly damaged, except as limited or excluded
elsewhere in this policy}; or
e.
{If Plan 5 is selected in the Declarations, then the following language will appear: Covered Causes
of Loss means risks of mechanical or electrical breakdown or being lost, stolen or directly damaged,
except as limited or excluded elsewhere in this policy.}
6. Property Not Covered

Covered Property does not include:
a. Contraband or property in the course of illegal transportation or trade.
b. Data, meaning information input to, stored on, or processed by the Covered Property. This includes
documents, databases, messages, licenses, contact information, passwords, books, games,
magazines, photos, videos, ringtones, music, and maps.
c. Proprietary electronic devices included with automobile systems and any motor vehicle or watercraft
original or after-market equipment or accessories, whether or not permanently installed, including any
antenna or wiring.
d. Property that has been entrusted to (including property in-transit) others for any service, repair or
replacement, other than the Authorized Service Center or its designee.
e. Nonstandard Software, meaning software other than Standard Software. Standard Software means
the operating system pre-loaded on or included as standard with the Covered Property from the
manufacturer.
f. Any portable electronic device whose unique identification number (including serial number, ESN,
MEID, IMEI or similar unique identification number) has been altered, defaced or removed.
g. Nonstandard External Media, meaning physical objects on which data can be stored but which are not
integrated components of the Covered Property required for it to function. This includes data cards,
memory cards, external hard drives, and flash drives. Nonstandard External Media does not include
Standard External Media. Standard External Media means physical objects on which data can be
stored and that came standard in the original packaging with the Covered Property from the
manufacturer but which are not integrated components of the Covered Property required for it to
function.
h. Any property you lease, rent or hold for others.
i.
Any other equipment or accessories not described as Covered Property.
j.
Batteries (unless otherwise covered as a covered accessory when part of a loss to other Covered
Property).
B. EXCLUSIONS
This insurance does not apply to loss or damage identified in any of the following or directly or indirectly
caused by or resulting from any of the following:
1. Governmental Authority
Seizure or destruction of property by order of governmental authority.
2. Nuclear Hazard
Nuclear reaction or radiation, or radioactive contamination, however caused.
damage by fire ensues, we will pay only for such ensuing loss or damage.
3. War
CLRI 005 (04/2012)
If physical loss or
Page 2 of 9
(a) War, including undeclared or civil war;

(b) Warlike action by a military force; or
(c) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in
hindering or defending against any of these.
Such loss or damage is excluded regardless of any other cause or event that contributes concurrently
or in any sequence to the loss or damage.
4. Delay, Loss of Use
Indirect or consequential loss or damage, including loss of use, interruption of business, loss of
service, loss of market loss of time, loss of profits, inconvenience or delay in repairing or replacing
lost or damaged Covered Property.
5. Electrical and Mechanical Breakdown
Failure of Covered Property to operate due to a faulty part or workmanship or normal wear and tear
when operated according to the manufacturers instructions.
6. Dishonest or Criminal Acts
Dishonest, fraudulent or criminal acts by you, any authorized user of the Covered Property, anyone
you entrust with the Covered Property, or anyone else with an interest in the Covered Property for
any purpose, whether acting alone or in collusion with others.
7. Obsolescence
Obsolescence or depreciation.
8. Recall or Design Defect
(a) Manufacturers recall; or
(b) Error or omission in design, programming or system configuration.
9. Cosmetic Damage
Cosmetic damage, however caused, that does not affect the manufacturer's intended use. This
includes:
(a) Cracking, marring, or scratching.
(b) Change in color or other change in the exterior finish.
(c) Expansion or contraction.
10. Covered Under Warranty
Loss or damage that is covered under the manufacturers warranty. In the event we have knowledge
of a prior malfunction, proof of repair may be required before coverage for future claims is applicable.
11. Late Claims
Claims not reported as required by Section E.3. of this policy.
12. Programming, Repair Work
Programming, cleaning, adjusting, repairing, modifying, installing, servicing, maintaining, or
performing any other work upon Covered Property.
13. Virus
Computer virus or any other malicious code or similar instruction that:
(a) Disrupts the normal operation of the Covered Property; or
(b) Results in destruction of or unsuitability of data or programs stored in the Covered Property.
14. Voluntary Parting
Voluntarily parting with Covered Property by an Insured or by any person entrusted with Covered
Property, whether or not induced to do so by any fraudulent scheme, trick, device or false pretense.
15. Intentional Loss or Damage
Abuse, intentional acts, or use of the Covered Property in a manner inconsistent with the use for
which it was designed, intended, or advised by the manufacturer or that would void the
manufacturers warranty.
CLRI 005 (04/2012)
Page 3 of 9
16. Pollution
The discharge, dispersal, seepage, migration or escape of pollutants. Pollutants means any solid,
liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acid, alkalis,
chemicals, artificially produced electric fields, magnetic field, electromagnetic field, sound waves,
microwaves, and all artificially produced ionizing or non-ionizing radiation and/or waste. Waste
includes materials to be recycled, reconditioned or reclaimed.
17. Fees or Charges
Any fees or charges assessed by Vendor, whether the charges incurred are legitimate or fraudulent.
18. Failure to Mitigate
Failure to do what is reasonably necessary to minimize the loss and to protect the Covered Property
from any further loss.
19. Vermin
Insects, rodents, or other vermin.
C. LIMITS OF INSURANCE
The most we will spend in any one occurrence to repair or replace Covered Property is the applicable Per
Claim (Per Occurrence) Limit shown in the Declarations. The Limit of Insurance applies separately to each
claim.
Each Additional Insured is limited to the maximum number of losses as shown in the Aggregate Limit section
in the Declarations in any consecutive 12 month time period, including losses incurred during any prior
consecutive policy period. When this limit is exhausted, coverage will cease immediately and we will notify
the Additional Insured that coverage has ceased and no future premiums are due.
D. DEDUCTIBLE
The Deductible as shown in the Declarations is non-refundable and is payable at the time a loss is approved
by the Agent. This Deductible will apply to each filed and approved covered claim, and does not reduce the
Limit of Insurance. Only an Insured may pay the Deductible.
E. INSUREDS DUTIES IN EVENT OF LOSS TO INSUREDS COVERED PROPERTY
In the event of loss or damage to Covered Property, the Insured presenting the claim must cooperate with us
and see that the following are done:
1. Suspend Wireless Service
Suspend your wireless communication service, if applicable, as soon as possible if the Covered Property
is lost or stolen.
2. Notify Police
If a claim involves a violation of law or any loss of possession, notify the police and obtain a police report
or case number, the police station phone number, and the officers name and badge number taking the
report. If requested, provide a copy of the police report to our Agent within 30 days of request.
3. Notify Agent, Give Description
Notify the Agent within Notification of Loss Period as shown in the Declarations of the time of loss
Give a complete description of:
a. The Covered Property, including make and model, wireless number, if applicable, and unique
identification number (such as serial number, ESN, MEID, IMEI or similar unique identification
number); and
b. How, when and where the loss or damage occurred.
4. Protect
Take all reasonable steps to protect the Covered Property from further damage.
5. Permit Inspection
Permit us or our Agent to inspect the damaged property. If we request to evaluate your equipment failure
prior to completion of your claim, we may require you to take the Covered Property to a specified location
in your area, or send it to the Agent or Authorized Service Center at our expense.
CLRI 005 (04/2012)
Page 4 of 9
6. Statement Under Oath

If requested by us or our Agent, submit to questioning under oath about a claim or other matter relating to
this policy. In such event, the answers must be signed and may be recorded.
7. Proof of Loss and Ownership
If required, provide:
a. Proof of ownership, such as a bill of sale, receipt, proof of purchase or warranty exchange.
b. A signed, sworn proof of loss or damage containing the information we or our Agent request to settle
the claim. We may require this statement to be notarized, for which you may incur a nominal fee.
c. A copy of government-issued photo identification.
d. Other records and documents that may be reasonably requested.
These records must be provided within 30 days after our request for the documentation.
8. Return of Damaged and/or Malfunctioning Covered Property
The Additional Insured is required to return the damaged property including, if coverage is provided under
this policy, property that suffered mechanical and electrical breakdown, to the Authorized Service Center
or other designated location. If the replacement equipment is sent to you, you will be provided a prepaid
shipping label and envelope in which to return the damaged property.
Disposal of the damaged Covered Property other than by returning it to the Authorized Service Center, or
other location designated by us, requires the prior consent of us or our Agent.
If the damaged Covered Property is not returned as directed within 15 days of the receipt of the
replacement equipment, a Non-Return Fee as applicable to the model of Covered Property, not to exceed
the Non-Return Fee as shown in the Declarations may be charged to the Additional Insured.
Any recovery of lost or stolen property will accrue entirely to our benefit.
9. Take Delivery
We may make available to you the approved replacement equipment for pick up at your Vendor. We may
also ship the approved replacement equipment through our Authorized Service Center directly to you
within the United States for which you must be available to take delivery of the replacement equipment
within 30 days of claim authorization. If you are not available at the time you agree to take delivery, you
may be required to pay the costs of reshipping your replacement equipment.
F. OUR DUTIES IN EVENT OF LOSS
1. When We Repair or Replace
If a claim is made, we or our Agent will notify the Insured of our Agents assessment of the claim within 10
days after we or our Agent receive all the information requested from the Insured presenting the claim.
Repair or replacement of the lost or damaged Covered Property will be done within 30 days after the
Insured, or his or her designee has complied with all the terms of this policy, and we have agreed with the
Insured about the repair or replacement.
2. Our Options
At our option, we or the Authorized Service Center may repair the Covered Property with substitute parts
or provide substitute equipment that:
a. Is of like kind, quality and functionality;
b. Is either new, refurbished or remanufactured, and may contain original or non-original manufacturer
parts; and
c. May be a different brand, model or color.
G. ADDITIONAL CONDITIONS
1. Arbitration Agreement
Please read this Arbitration Agreement carefully. It affects your rights. Most of your concerns about
this policy can be addressed simply by contacting us at insert toll free number. In the unlikely event we
cannot resolve any disputes, including any claims under this policy, that you or we may have, YOU AND
WE AGREE TO RESOLVE THOSE DISPUTES THROUGH EITHER BINDING ARBITRATION OR
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Page 5 of 9
SMALL CLAIMS COURT INSTEAD OF THROUGH COURTS OF GENERAL JURISDICTION. YOU

AND WE AGREE THAT ANY ARBITRATION WILL TAKE PLACE ON AN INDIVIDUAL BASIS ONLY.
YOU AND WE AGREE TO WAIVE THE RIGHT TO A TRIAL BY JURY AND TO PARTICIPATE IN
CLASS ARBITRATIONS AND CLASS ACTIONS. Arbitration is more informal than a lawsuit in court.
Arbitration uses a neutral arbitrator instead of a judge or jury. It has more limited discovery than in court
and is subject to limited review by courts. Arbitrators can award the same damages and relief that a court
can award.
For the purpose of this Arbitration Agreement, references to we us and our includes [Liberty Mutual
Insurance Company] [Liberty Insurance Underwriters Inc.], our Agent, the First Named Insured and their
respective parents, subsidiaries, affiliates, agents, employees, successors and assigns. This policy
evidences a transaction in interstate commerce, and thus the Federal Arbitration Act governs the
interpretation and enforcement of this Arbitration Agreement. This Arbitration Agreement shall survive the
termination of this policy.
This Arbitration Agreement is intended to be interpreted broadly, and it includes any dispute: (1) arising
out of or relating in any way to the policy or to the relationship between You and Us, whether based in
contract, tort, statute, fraud, misrepresentation or otherwise; (2) that arose either before this Arbitration
Agreement or policy was entered into by you and us or that arises after this Arbitration Agreement or
policy is terminated; and (3) that currently is the subject of a purported class action litigation in which you
are not a member of a certified class. Notwithstanding the foregoing, this Arbitration Agreement does not
preclude you from bringing an individual action in small claims court or from informing any federal, state
or local agencies or entities of your dispute. Such agencies or entities may be able to seek relief on your
behalf.
If you or we intend to seek arbitration you and we must first send to the other a written Notice of Claim
(Notice) by certified mail. Your Notice to us should be addressed to: insert address. The Notice must
describe the dispute and state the specific relief sought. If you and we do not resolve the dispute within
30 days of receipt of the Notice, you or we may initiate an arbitration proceeding with the American
Arbitration Association (AAA). You can obtain the forms necessary to initiate an arbitration proceeding
by visiting www.adr.org or by calling 1-800-778-7879. After we receive notice that you have commenced
arbitration, we will reimburse you for payment of any filing fee to the AAA. If you are unable to pay a
required filing fee, we will pay it if you send a written request by certified mail to: insert address. The
arbitration shall be administered by the AAA in accordance with the Commercial Arbitration Rules and the
Supplementary Procedures for Consumer Related Disputes (the Arbitration Rules) in effect at the time
the arbitration is initiated and as modified by this Arbitration Agreement. You can obtain a copy of the
Arbitration Rules by visiting www.adr.org or by calling 1-800-778-7879.
The arbitrator appointed by the AAA to decide the dispute is bound by the terms of this Arbitration
Agreement. All issues are for the arbitrator to decide, including the scope of this Arbitration Agreement,
with the exception that issues relating to the enforceability of this Arbitration Agreement may be decided
by a court. Unless you and we agree otherwise, any arbitration hearings will take place in the county or
parish of your billing address. If your dispute is for $10,000 or less, you may choose to conduct the
arbitration hearings either by submitting documents to the arbitrator or by appearing before the arbitrator
in person or by telephone. If your dispute is for more than $10,000, the right to arbitration hearings will be
determined by the Arbitration Rules. We will pay all filing, administration and arbitrator fees for any
arbitration initiated pursuant to this Arbitration Agreement, unless your dispute is found by the arbitrator to
have been frivolous or brought for an improper purpose under Federal Rule of Civil Procedure 11(b). In
that case, the payment of such fees shall be governed by the Arbitration Rules.
At the conclusion of the arbitration hearings, the arbitrator shall issue a written decision which includes an
explanation of the facts and law upon which the decision is based. If the arbitrator finds in your favor and
issues a damages award that is greater than the value of the last settlement offer made by us or if we
made no settlement offer and the arbitrator awards you any damages, we will: (1) pay you the amount of
the damages award or $7,500, whichever is greater; and (2) pay your attorney, if any, twice the amount of
the attorney's fees and the actual amount of any expenses reasonably incurred when pursuing your
dispute in arbitration. You and we agree not to disclose any settlement offers to the arbitrator until after
the arbitrator has issued the written decision. The arbitrator may resolve any disputes regarding
attorney's fees and expenses either during the arbitration hearings or, upon request, within 14 days of the
arbitrator's written decision. While the right to the attorneys fees and expenses discussed above is in
CLRI 005 (04/2012)
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addition to any right you may have under applicable law, neither you nor your attorney may recover
duplicate awards of attorneys fees and expenses. Although we may have the right under applicable law
to recover attorneys fees and expenses from you if we prevail in the arbitration, we hereby waive the
right to do so.
To the extent either declaratory or injunctive relief is sought in the arbitration, such relief can be awarded
only to the extent necessary to provide the relief warranted by a party's individual claim. YOU AND WE
AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN AN INDIVIDUAL
CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR
REPRESENTATIVE PROCEEDING. Unless you and we agree otherwise, the arbitrator may not
consolidate the dispute of another person with your or our dispute and may not preside over any form of a
representative or class proceeding. If this specific provision of this Arbitration Agreement is found to be
unenforceable, then the entirety of this Arbitration Agreement shall be null and void.
2. Claim Authorization and Loss Payment
We or our Agent has the right to settle the loss with the Insured or his or her designee.
No claims will be accepted unless authorized by our Agent.
All repairs and replacements must be made by the Authorized Service Center, unless we or our Agent
gives the Insured other specific directions. In no event will Insureds be entitled to reimbursement for any
out-of-pocket expenses.
3. Cancellation
a. How An Additional Insured Cancels
An Additional Insured may cancel the coverage provided by notifying the Agent or First Named
Insured who will advise the Agent.
b. How We Cancel
We may cancel this policy or change the terms and conditions only upon providing the First Named
Insured and Additional Insured with at least thirty (30) days notice or other longer period as required
by law unless we cancel for the following reasons:
(1) We may cancel an Additional Insured under this policy upon fifteen (15) days notice or other
longer period as required by law for discovery of fraud or material misrepresentation in obtaining
coverage or in the presentation of a claim thereunder.
(2) We may cancel an Additional Insured under this policy immediately or other longer period as
required by law for the following reasons:
(a) for nonpayment of premium; or
(b) if the Additional Insured exhausts the Aggregate Limit of liability, if any, under the terms of this
policy and we send notice of cancellation to the Additional Insured within thirty (30) calendar
days after exhaustion of the limit. However, if notice is not timely sent, enrollment shall
continue notwithstanding the Aggregate Limit of liability until we send notice of cancellation to
the Additional Insured.
c. How First Named Insured Cancels
If this policy is cancelled by the First Named Insured, the First Named Insured shall mail or deliver
written notice to each Additional Insured advising the Additional Insured of the cancellation of the
policy and the effective date of cancellation. The written notice shall be mailed or delivered to the
Additional Insured at least thirty (30) days prior to the cancellation.
d. How Notice of Cancellation is Provided
Notices made pursuant to Section G.3.b. and c. shall be in writing and include the actual reason for
cancellation and the effective date of cancellation. The coverage will end on that date.
Notices may be mailed or delivered to the First Named Insured at its mailing address. Notices may
be mailed or delivered to the affected Additional Insureds last known mailing or electronic addresses
on file with us.
We or the First Named Insured shall maintain proof of mailing in a form authorized or accepted by the
United States Postal Service or other commercial mail delivery service. We or the First Named
CLRI 005 (04/2012)
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Insured may comply with Section G.3.b. and c. by providing such notice or correspondence to the
First Named Insured or its Additional Insureds by electronic means. If accomplished through
electronic means, we or the First Named Insured shall maintain proof that the notice or
correspondence was sent.
The First Named Insured agrees to pay or act as delivery agent for notice of cancellation to all
Additional Insureds.
e. Return Premiums, If Any
If this policy is canceled, any refunds due will be on a pro rata basis. The cancellation will be
effective even if the refund has not been made or offered.
4. Eligibility
a. To be eligible for coverage you must 1. not have engaged in fraud or abuse with respect to this or a
similar communications equipment insurance program; and 2. not be in breach of any material term of
this policy, including but not limited to failure to return damaged Covered Property when requested in
conjunction with a loss.
b. {If Coverage Eligibility 1 is selected in the Declarations, then the following language will appear: If
you request enrollment of coverage and your request is approved by us, your coverage is retroactive
to the date of your application. The successful completion of a test call to the Covered Property may
be required prior to our approval.}
{If Coverage Eligibility 2 is selected in the Declarations, then the following language will appear: If
your request for enrollment of coverage is submitted on the date of purchase of the Covered
Property, and your request is approved by us, your coverage is retroactive to the date of your
application.
If your request for enrollment of coverage is submitted after the date of purchase of the Covered
Property and your request is approved by us, coverage will begin after a waiting period of the number
of days shown in the Declarations days following the submission of your request for enrollment,
unless we or our Agent notify you prior to completion of the waiting period that your request is not
approved. The successful completion of a test call to the Covered Property may be required prior to
our approval.}
your request for enrollment of coverage is submitted on the date of purchase of the Covered
Property, and your request is approved by us, your coverage will begin after a waiting period of the
number of days shown in the Declarations days following the submission of your request for
enrollment, unless we or our Agent notify you prior to completion of the waiting period that your
request is not approved. The successful completion of a test call to the Covered Property may be
required prior to our approval.}
you request enrollment and your request is approved by us, your coverage is effective on the date of
approval of your application. We or our Agent will notify you once your application has been
reviewed. The successful completion of a test call to the Covered Property may be required prior to
our approval.}
Eligibility for enrollment after the date of purchase may be subject to limitations.
5. Changes
The First Named Insured, on its own behalf and on behalf of the Additional Insureds, is authorized to
make changes in the terms of this policy with our consent. This policy's terms can be amended or waived
only by endorsement issued by us and made a part of this policy.
If notice of such changes is mailed, proof of mailing will be sufficient proof of notice.
6. Concealment, Misrepresentation or Fraud
This policy is voidable in any case of fraud, intentional concealment or misrepresentation of a material
fact, by either the First Named Insured or any Additional Insured or their designee at any time,
concerning:
a. This policy;
CLRI 005 (04/2012)
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b. The Covered Property;

c. The Insured's interest in the Covered Property; or
d. A claim under this policy;
but only with respect to their coverage.
7. Conformity To Statute
We agree that any terms of this policy not in conformity with the statutes of the state in which this policy is
issued are amended to conform to those applicable state statutes.
8. Benefit Only Available To Insureds
No person or organization, other than an Insured, will benefit from this insurance. We may provide you
access to other limited benefits or services related to your Covered Property where available. These may
include: property location or recovery services; data management or recovery services; equipment
service and maintenance; reduced cost upgrade or purchase benefits or other services provided through
your Vendor or other authorized service facilities.
9. Legal Action Against Us
No one may bring a legal action against us under this policy unless:
a. There has been full compliance with all the terms of this policy;
b. The action is brought within 2 years after the Insured has knowledge of the loss or damage;
c. The action is brought in compliance with Section G.1.
10. Liberalization
If we adopt any revision in this policy which would broaden the Coverage under this policy without
additional premium within 60 days prior to or during the policy period, the broadened coverage will
immediately apply to this policy.
11. Premiums
a. The First Named Insured is responsible for the payment of all premiums.
b. Within fifteen days after the end of each month, the First Named Insured:
(1) Will report to the Agent the total number of Covered Property units that were covered under this
policy as of the last day of that month; and
(2) Will remit the monthly premium to us through the Agent based on that report.
The monthly premium will be calculated by multiplying the Monthly Premium Rate per unit of
Covered Property by the total number of such units.
c. The First Named Insured may request that Additional Insureds be billed for the Monthly Premium Rate
applicable to their Covered Property.
If the First Named Insured provides monthly billing and collection services for the Agent, all funds
collected by the First Named Insured are our property.
We may examine and audit the First Named Insureds books and records relating to such premium
payments and reporting at any time during the policy period and up to three years afterward.
12. Transfer of Rights and Duties Under This Policy (Assignment)
No rights and duties under this policy may be transferred without our written consent.
13. Transfer of Rights of Recovery Against Others To Us (Subrogation)
If after we have made good the covered loss or damage, any Insured has rights to recover damages from
another, and those rights are transferred to us to the extent of our cost of repair or replacement. The
Insured must do everything necessary to secure our rights and must do nothing after loss or damage to
impair them.
In witness whereof, the Insurer has caused this policy to be signed by its President and its Secretary.
__________________________
__________________________
President
CLRI 005 (04/2012)
Secretary
Page 9 of 9
[LOGO]
This Commercial Inland Marine Policy is underwritten by
[insert address]
[insert toll free number]
Insurer:
Vendor:
Policy Number:
First Named
Insured:
and
Mailing Address:
Policy Period:
From:
To:
12:01 a.m., standard time at the mailing address shown above.
Agent:
Insurance Provided:
In return for the payment of the premium, and subject to all the terms of this
policy, we agree to provide the insurance as stated in this policy.
Covered Property:
Coverage Territory:
(a)
{Please refer to Section A.

COVERAGE, Subsection 4 Coverage
Territory}
(b)
Covered Causes of Loss:
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
{Please refer to Section A.

COVERAGE, Subsection 5. Covered
Causes of Loss}
Limits of Insurance
{Please refer to Section C. LIMITS OF
INSURANCE}
Per Claim (Per

Occurrence) Limit:
Aggregate Limit:
Deductible:
{Please refer to Section D.
DEDUCTIBLE}
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Page 1 of 2
Notification of Loss Period:

{Please refer to Section E. INSUREDS
DUTIES IN EVENT OF LOSS TO
INSUREDS COVERED
PROPERTY, Subsection 3.Notify
Agent, Give Description}
Non-Return Fee:
{Please refer to Section E. INSUREDS
DUTIES IN EVENT OF LOSS TO
INSUREDS COVERED
PROPERTY, Subsection 8. Return of
Damaged and/or Malfunctioning
Covered Property}
Coverage Eligibility:
(1)
{Please refer to Section G.

ADDITIONAL CONDITIONS,
Subsection 4. Eligibility}
(2) Waiting period of

(3) Waiting period of
(4)
Monthly Premium Rate:

{Please refer to Section G.
ADDITIONAL CONDITIONS,
Subsection 11.Premiums}
Form Numbers of Coverage Forms, Endorsements and other forms that are a part of this policy:
Our President and Secretary have signed this policy.
CLRI 006 (04/2012)

Page 2 of 2
Endorsement Number:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ACCOUNT BASED COVERAGE ENDORSEMENT A

This endorsement modifies insurance provided under the PORTABLE ELECTRONICS
COVERAGE INSURANCE POLICY as follows:
I.
Subparagraph b. Additional Insureds of Paragraph 1. Who Is Covered of Section A.

COVERAGE is deleted and replaced by the following:
b.
Additional Insureds
The First Named Insured has the right to request Additional Insured status for a customer
for his or her interest in the Covered Property which he, she or it owns (references herein
to Insured refer collectively to First Named Insured and Additional Insured).
Requests for coverage for Additional Insureds are subject to our approval.
Account Based Coverage provides coverage for Covered Property active on the
Additional Insureds account with the Vendor.
When an Additional Insured adds a new portable electronic device to their account with
the Vendor, it immediately becomes Covered Property.
When a portable electronic device is removed from the Additional Insureds account with
the Vendor, it immediately ceases to be Covered Property.
II.
Section C. LIMITS OF INSURANCE is deleted and replaced by the following:

1. The most we will spend in any one occurrence to repair or replace Covered Property
is the applicable Per Claim (Per Occurrence) Limit shown in the Declarations. This
Limit of Insurance applies separately to each claim.
{The language next to the check box will not appear in the policy if there are a fixed number of losses}
2. The maximum number of losses in any consecutive 12 month time period, including
losses incurred during any prior consecutive policy period, for each Additional
Insureds account is limited to the applicable Aggregate Limit as shown in the
Declarations.
CLRI 007 (04/2012)

Page 1 of 2
The applicable Aggregate Limit is determined based on the total number of portable
electronic devices on an Additional Insureds account with the Vendor. If during the
coverage period, the Additional Insured adds or removes portable electronic devices
from their account with the Vendor, the Aggregate Limit will automatically be
adjusted. In the event an Additional Insured removes mobile numbers from their
account with the Vendor and the number of losses in the prior 12 month time period
equals or exceeds the Aggregate Limit applicable to the new number of portable
electronic devices on their account, coverage will cease immediately.
When this limit is exhausted, we will notify the Additional Insured that coverage has
ceased and no future premiums are due.
III.
Subparagraph b. (2) of Paragraph 11. Premiums of Section G. ADDITIONAL CONDITIONS

is deleted and replaced by the following:
(2)
Will remit the monthly premium to us through the Agent based on that report.
The monthly premium will be calculated by summing the Monthly Premium Rates for
the total number of insured accounts.
All other terms and conditions of the policy remain in full force and effect.
CLRI 007 (04/2012)

Page 2 of 2
Endorsement Number:

ACCOUNT BASED COVERAGE ENDORSEMENT B

I.

b.
Additional Insureds
II.

2. The maximum number of losses in any consecutive 12 month time period for each
Additional Insureds account, including losses incurred during any prior consecutive
policy period, is limited to the applicable Aggregate Limit as shown in the
Declarations.
CLRI 008 (04/2012)

Page 1 of 2
electronic devices on an Additional Insureds account with the Vendor at the time
coverage for the Additional insured begins. If during the coverage period, the
Additional Insured adds or removes portable electronic devices from their account
with the Vendor, the Aggregate Limit will automatically adjust after completion of
each covered claim based on the total number of portable electronic devices on their
account immediately after completion of the claim. If the number of losses in the prior
12 month time period equals or exceeds the Aggregate Limit applicable after
completion of the claim, coverage will cease immediately.
III.

(2)
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Page 2 of 2
Endorsement Number:

ACCOUNT BASED COVERAGE ENDORSEMENT C

I.

b.
Additional Insureds
Account Based Coverage provides coverage for the enrolled Covered Property active on
the Additional Insureds account with the Vendor. For coverage to exist on any portable
electronic device, you must have enrolled the device for Account Based Coverage.
When an Additional Insured enrolls a new portable electronic device for coverage,
coverage is effective immediately on the newly enrolled portable electronic device.
II.

2.
The maximum number of losses in any consecutive 12 month time period for each
CLRI 009 (04/2012)

Page 1 of 2

Declarations.
The applicable Aggregate Limit is determined based on the total number of enrolled
portable electronic devices on an Additional Insureds account with the Vendor. If
during the coverage period, the Additional Insured adds or removes enrolled portable
electronic devices from their account with the Vendor, the Aggregate Limit will
automatically be adjusted. In the event an Additional Insured removes mobile
numbers from their account with the Vendor and the number of losses in the prior 12
month time period equals or exceeds the Aggregate Limit applicable to the new
number of enrolled portable electronic devices on their account, coverage will cease
immediately.
III.

(2)
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Page 2 of 2
Endorsement Number:

ACCOUNT BASED COVERAGE ENDORSEMENT D

I.

b.
Additional Insureds
Account Based Coverage provides coverage for the enrolled Covered Property on the
Additional Insureds account with the Vendor. For coverage to exist on any portable
II.

2. The maximum number of losses in any consecutive 12 month time period, including
CLRI 010 (04/2012)

Page 1 of 2

Declarations.
portable electronic devices on an Additional Insureds account with the Vendor at the
time coverage for the Additional insured begins. If during the coverage period, the
Additional Insured adds or removes enrolled portable electronic devices from their
account with the Vendor, the Aggregate Limit will automatically adjust after
completion of each covered claim based on the total number of enrolled portable
electronic devices on their account immediately after completion of the claim. If the
number of losses in the prior 12 month time period equals or exceeds the Aggregate
Limit applicable after completion of the claim, coverage will cease immediately.
III.

(2)
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Page 2 of 2
Endorsement Number:

DEVICE AND ACCOUNT BASED COVERAGE

ENDORSEMENT A
I.

b.
Additional Insureds
(1) Device Based Coverage provides coverage for Covered Property associated with a
specific enrolled portable electronic device active on the Additional Insureds account
with the Vendor.
(2) Account Based Coverage provides coverage for Covered Property active on the
When an Additional Insured adds a new portable electronic device to their account
with the Vendor, if the Additional Insured has previously chosen Account Based
Coverage, the new portable electronic device immediately becomes Covered
Property.
When a portable electronic device is removed from the Additional Insureds account
with the Vendor, it immediately ceases to be Covered Property.
II.

CLRI 011 (04/2012)
Page 1 of 2
2. When Device Based Coverage is chosen by the Additional Insured, each Additional
Insured is limited to the maximum number of losses as shown in the Aggregate Limit
section in the Declarations in any consecutive 12 month time period, including losses
incurred during any prior consecutive policy period. When this limit is exhausted,
coverage will cease immediately and we will notify the Additional Insured that
coverage has ceased and no future premiums are due.
3. When Account Based Coverage is chosen by the Additional Insured,
Declarations.
electronic devices on an Additional Insureds account with the Vendor. If during the
coverage period, the Additional Insured adds or removes portable electronic devices
from their account with the Vendor, the Aggregate Limit will automatically be
adjusted. In the event an Additional Insured removes portable electronic devices
from their account with the Vendor and the number of losses in the prior 12 month
time period equals or exceeds the Aggregate Limit applicable to the new number of
portable electronic devices on their account, coverage will cease immediately.
III.

(2)
For Device Based Coverage, the monthly premium will be calculated by multiplying
the Monthly Premium Rate per unit of Covered Property by the total number of such
units.
For Account Based Coverage, the monthly premium will be calculated by summing
the Monthly Premium Rates for the total number of insured accounts.
CLRI 011 (04/2012)

Page 2 of 2
Endorsement Number:


ENDORSEMENT B
I.

b.
Additional Insureds
with the Vendor.
Property.
II.

CLRI 012 (04/2012)
Page 1 of 2
{The language next to the check box will not appear in the policy if there are a fixed number of loses}
Declarations.
electronic devices on an Additional Insureds account with the Vendor at the time
coverage for the Additional insured begins. If during the coverage period, the
Additional Insured adds or removes portable electronic devices from their account
with the Vendor, the Aggregate Limit will automatically adjust after completion of
each covered claim based on the total number of portable electronic devices on their
account immediately after completion of the claim. If the number of losses in the prior
12 month time period equals or exceeds the Aggregate Limit applicable after
completion of the claim, coverage will cease immediately.
III.

(2)
units.
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Page 2 of 2
Endorsement Number:


ENDORSEMENT C
I.

b.
Additional Insureds
with the Vendor.
(2) Account Based Coverage provides coverage for the enrolled Covered Property active
on the Additional Insureds account with the Vendor. For coverage to exist on any
portable electronic device, you must have enrolled the device for Account Based
Coverage.
II.

CLRI 013 (04/2012)
Page 1 of 2
incurred during any prior consecutive policy period,. When this limit is exhausted,
The maximum number of losses in any consecutive 12 month time period, including
Declarations.
portable electronic devices on an Additional Insureds account with the Vendor. If
during the coverage period, the Additional Insured adds or removes enrolled portable
electronic devices from their account with the Vendor, the Aggregate Limit will
automatically be adjusted. In the event an Additional Insured removes portable
electronic devices from their account with the Vendor and the number of losses in the
prior 12 month time period equals or exceeds the Aggregate Limit applicable to the
new number of enrolled portable electronic devices on their account, coverage will
cease immediately.
III.

(2)
units.
CLRI 013 (04/2012)

Page 2 of 2
Endorsement Number:


ENDORSEMENT D
I.

b.
Additional Insureds
with the Vendor.
Coverage.
II.

CLRI 014 (04/2012)
Page 1 of 2
incurred during any prior consecutive policy period,. When this limit is exhausted,
3.
When Account Based Coverage is chosen by the Additional Insured,

Declarations.
portable electronic devices on an Additional Insureds account with the Vendor at
the time coverage for the Additional insured begins. If during the coverage period,
the Additional Insured adds or removes enrolled portable electronic devices from
their account with the Vendor, the Aggregate Limit will automatically adjust after
completion of each covered claim based on the total number of enrolled portable
electronic devices on their account immediately after completion of the claim. If the
number of losses in the prior 12 month time period equals or exceeds the Aggregate
Limit applicable after completion of the claim, coverage will cease immediately.
III.

(2)
units.
CLRI 014 (04/2012)

Page 2 of 2
Endorsement Number:

ELECTRICAL AND MECHANICAL BREAKDOWN

COVERAGE ENDORSEMENT
I.
Paragraph 5. Electrical and Mechanical Breakdown of Section B. EXCLUSIONS is deleted

and not replaced.
CLRI 015 (04/2012)

Page 1 of 1
Endorsement Number:

ACCOUNT BASED COVERAGE ENDORSEMENT E

I.

b.
Additional Insureds
II.

The most we will spend in any one occurrence to repair or replace Covered Property is
the applicable Per Claim (Per Occurrence) Limit shown in the Declarations. This Limit of
Insurance applies separately to each claim.
Coverage for Covered Property is limited to the maximum number of losses as shown in
the Aggregate Limit section in the Declarations in any consecutive 12 month time period,
including losses incurred during any prior consecutive policy period. When the limit is
exhausted, coverage will cease immediately for Covered Property and we will notify the
Additional Insured.
CLRI 016 (04/2012)

Page 1 of 2
III.

(2)
CLRI 016 (04/2012)

Page 2 of 2
Endorsement Number:

ACCOUNT BASED COVERAGE ENDORSEMENT F

I.

b.
Additional Insureds
Account Based Coverage provides coverage for the enrolled Covered Property active on
the Additional Insureds account with the Vendor. For coverage to exist on any portable
II.

The most we will spend in any one occurrence to repair or replace Covered Property is
the applicable Per Claim (Per Occurrence) Limit shown in the Declarations. This Limit of
Insurance applies separately to each claim.
Coverage for Covered Property is limited to the maximum number of losses as shown in
the Aggregate Limit section in the Declarations in any consecutive 12 month time period,
exhausted, coverage will cease immediately for Covered Property and we will notify the
Additional Insured.
CLRI 017 (04/2012)

Page 1 of 2
III.

(2)
CLRI 017 (04/2012)

Page 2 of 2
Endorsement Number:


ENDORSEMENT E
I.

b.
Additional Insureds
with the Vendor.
Property.
II.

CLRI 018 (04/2012)

Page 1 of 2
3. When Account Based Coverage is chosen by the Additional Insured, coverage for
Covered Property is limited to the maximum number of losses as shown in the
Aggregate Limit section in the Declarations in any consecutive 12 month time period,
exhausted, coverage will cease immediately for Covered Property and we will notify
III.

(2)
units.
CLRI 018 (04/2012)

Page 2 of 2
Endorsement Number:


ENDORSEMENT F
I.

b.
Additional Insureds
with the Vendor.
Coverage.
II.

CLRI 019 (04/2012)
Page 1 of 2
3.
III.
When Account Based Coverage is chosen by the Additional Insured, coverage for
Covered Property is limited to the maximum number of losses as shown in the
Aggregate Limit section in the Declarations in any consecutive 12 month time period,
exhausted, coverage will cease immediately for Covered Property and we will notify

(2)
units.
CLRI 019 (04/2012)

Page 2 of 2
Endorsement Number:

DECLINING DEDUCTIBLE ENDORSEMENT

This endorsement modifies insurance provided under the PORTABLE ELECTRONICS COVERAGE
INSURANCE POLICY as follows:
I.
Section D. DEDUCTIBLE is deleted in its entirety and replaced with the following:
The standard non-refundable deductible, as stated in the Deductible Schedule, is payable at the
time a loss is approved by the Agent.
However:
If you have continuously maintained coverage for at least [insert time frame] but not more
than [insert time frame] prior to the current loss without incurring another covered loss
during that time period, the Good Additional Insured deductible applies as stated in the
Deductible Schedule.
If you have continuously maintained coverage for at least [insert time frame] prior to the
current loss without incurring another covered loss less than [insert time frame] prior to the
current loss, the Loss Free Additional Insured deductible applies as stated in the Deductible
Schedule.
If you cease to maintain coverage under this policy or have a covered loss at any time for which
we provide a replacement [or repair], the standard deductible is reinstated. Thereafter, the
deductible may again be reduced if the conditions set forth above are satisfied.
The applicable deductibles are as set forth in the Deductible Schedule as shown in the
Declarations.
The deductible will apply to each filed and approved loss, and does not reduce the Limit of
Insurance. Only an Insured may pay the deductible.
CLRI 020 (04/2012)

Page 1 of 1
Endorsement Number:

DEDUCTIBLE BY PERIL ENDORSEMENT

I.
Section D. DEDUCTIBLE is deleted and replaced by the following:

As indicated in the Deductible Schedule, a deductible applies to each loss resulting from [insert
applicable Causes of Loss] of the Covered Property and a separate deductible applies to loss from all
other Causes of Loss. The deductible is non-refundable and is payable at the time a loss is approved
by the Agent. The deductible will apply to each filed and approved loss, and does not reduce the
Limit of Insurance. Only an Insured may pay the deductible.
As set forth in the Deductible Schedule as shown in the Declarations
CLRI 021 (04/2012)

Page 1 of 1
Endorsement Number:

VIRUS COVERAGE ENDORSEMENT

I.
Paragraph 13. Virus of Section B. EXCLUSIONS is deleted and not replaced.
CLRI 022 (04/2012)

Page 1 of 1
Endorsement Number:

BATTERY COVERAGE ENDORSEMENT

I.
Subparagraph j. of Paragraph 6. Property Not Covered of Section A. COVERAGE is deleted and

not replaced.
CLRI 023 (04/2012)

Page 1 of 1
Endorsement Number:

STANDARD SOFTWARE SCHEDULE ENDORSEMENT

I.
Subparagraph e. of Paragraph 6. Property Not Covered of Section A. COVERAGE is hereby

deleted in its entirety and replaced with the following:
e. Nonstandard Software, meaning software other than Standard Software. Standard Software
means the operating system pre-loaded on or included as standard with the Covered Property
from the manufacturer and other covered software listed in the Standard Software Schedule.
CLRI 024 (04/2012)

Page 1 of 1
Endorsement Number:

Commercial Inland Marine Standard Software Schedule
This schedule provides supplementary information to be used with the PORTABLE
ELECTRONICS COVERAGE INSURANCE POLICY to which it is attached.
Description of Standard Software Covered
__________________________________________________________________
CLRI 025 (04/2012)

Page 1 of 1
Endorsement Number:

DECLARATION CHANGE ENDORSEMENT
The following item(s):

Vendor
First Named Insured
First Named Insured Mailing Address
Policy Period
Authorized Service Center
Covered Property
Coverage Territory
Covered Causes of Loss

Limits of Insurance
Deductible
Notification of Loss Period
Non-Return Fee
Coverage Eligibility
Monthly Premium Rate
is (are) changed to read {See Additional Page(s)}:
CLRI 026 (04/2012)

2012 Asurion Insurance Serices, Inc.
Page 1 of 1
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Rate Information
Rate data does NOT apply to filing.
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Rate/Rule Schedule
Item
No.
1
2
Schedule Item
Status
Exhibit Name
State Exception Page
Rule # or Page #
LMIC-PEC-CA-1 02/2011
Edition
LMIC-PEC-CW-1 02/2011
Edition Pages 1 - 13
Rate Action
New
Previous State
Filing Number
New
Attachments
LMIC PEC CA SEP.pdf
LMIC Retail RATE MANUAL
FINAL.pdf

Liberty Insurance Underwriters, Inc.
Portable Electronics Coverage
State Exception Page - California
The following exceptions to the Countrywide Rating Plan apply in this state:
I.
Item D of Rule IV. Rate Modification Factors of Section Two Device Based Coverage Rates and
Rating Rules is deleted.
II. Item G of Rule IV. Rate Modification Factors of Section Two Device Based Coverage Rates and
Rating Rules is replaced by the following:
G. Schedule Rating
1. The following modifications may be applied to the rate for each tier to better recognize
specific characteristics affecting the exposure of the customers/devices in that tier. The
modifications are totaled on an additive basis and are limited to the applicable state
maximum. Premium eligibility for schedule rating is $500.
Criteria
Geographic Mix
Customer Base
Program
Administration
Expenses
Equipment Mix
Management/ Underwriting Experience

Persistency
02/2011 Edition
Description
Max. Credit
Max. Debit
Distribution of business between urban and
8%
8%
rural areas
Considerations:
Portable Electronic Vendors with a higher than average concentration of
rural customers tend to have lower theft claim frequencies
rural customers tend to have lower cost devices (either overall or within a
particular tier)
Local, regional or national scope of Portable
10%
10%
Electronics Vendor
Considerations:
Local and regional vendors tend to lag national vendors in terms of the menu
of devices offered. So, devices arent as new, and parts are easier to obtain
and/or cost less.
Actual vs. budgeted expenses associated
8%
8%
with the maintenance and administration of
the program
Considerations:
There is a greater risk of fraud with GSM devices vs. CDMA devices because
the memory chip can be moved between different devices.
Deviation of covered devices from industry
8%
8%
standard
Considerations:
Vendors vary in both the types of devices they offer and the distribution of
their customers among the various types of devices may have older
portfolio of devices; may have higher concentration of a particular type of
device
GSM vs. CDMA Technology
7%
7%
Considerations:
Devices equipped for GSM technology are more expensive to repair or
replace than the same devices equipped for CDMA technology.
Portable Electronics Vendors business
10%
10%
history; loss control procedures
Actual vs. average persistency of customers
5%
5%
Considerations:
Claim experience tends to be better on longer term insureds.
LMIC-PEC-CA-1

Criteria
Part Availability
Manufacturers
Warranty
Description
Max. Credit
Max. Debit
Availability of repair parts and replacement
8%
8%
devices
Considerations:
Certain replacement parts are more difficult to get, specifically parts for very
old devices, very new devices. When replacement parts arent available,
devices cant be repaired and new devices must be provided.
Geographic Availability of Repair Parts
5%
5%
Parts for devices made by smaller manufacturers may be more difficult to
obtain in some areas. In these cases replacements would be required rather
than repairs which result in higher claim costs.
Length/Degree of Coverage provided by
5%
5%
underlying manufacturers warranty
2. The maximum total schedule rating modification is +/-25%.

III. Item B. of Rule IV. Rate Modification Factors of Section Three Small Account Based Coverage
Rates and Rating Rules is replaced by the following:
B. Schedule Rating
1. The following modifications may be applied to the account rate to better recognize specific
characteristics affecting the exposure. The modifications are totaled on an additive basis and
are limited to the applicable state maximum. Premium eligibility for schedule rating is $500.
Criteria
Geographic Mix
Customer Base
Program
Administration
Expenses
Equipment Mix
02/2011 Edition
Description
Max. Credit
Max. Debit
8%
8%
rural areas
Considerations:
rural customers tend to have lower theft claim frequencies
rural customers tend to have lower cost devices (either overall or within a
particular tier)
10%
10%
Electronics Vendor
Considerations:
and/or cost less.
8%
8%
the program
Considerations:
8%
8%
standard
Considerations:
LMIC-PEC-CA-2

Criteria

Persistency
Part Availability
Manufacturers
Warranty
Description
Max. Credit
Max. Debit
device
7%
7%
Considerations:
10%
10%
5%
5%
Considerations:
8%
8%
devices
Considerations:
5%
5%
5%
5%

IV. Item B of Rule IV. Rate Modification Factors of Section Four Large Account Based Coverage Rates
and Rating Rules is replaced by the following:
B. Schedule Rating
Criteria
Geographic Mix
Customer Base
Program
Administration
Expenses
02/2011 Edition
Description
Max. Credit
Max. Debit
8%
8%
rural areas
Considerations:
Vendors with a higher than average concentration of rural customers
tend to have lower theft claim frequencies
Vendors with a higher than average concentration of rural customers
tend to have lower cost device (either overall or within a particular tier)
10%
10%
Electronics Vendor
Considerations:
and/or cost less.
8%
8%
the program
LMIC-PEC-CA-3

Criteria
Equipment Mix

Persistency
Part Availability
Manufacturers
Warranty
Description
Max. Credit
Max. Debit
Considerations:
8%
8%
standard
Considerations:
device
7%
7%
Considerations:
10%
10%
5%
5%
Considerations:
8%
8%
devices
Considerations:
5%
5%
5%
5%
02/2011 Edition
LMIC-PEC-CA-4

Section One General Rules
I.
Application of Manual
This manual provides the rates and rules that will be used by Liberty Mutual Insurance Company and
Liberty Insurance Underwriters, Inc. (collectively referred to as the Company) in providing Portable
Electronics Coverage to Portable Electronics Vendors and their customers.
II.
Eligibility Guidelines
A. Device Based Coverage
This coverage is available for Additional Insureds to cover one Portable Electronic device.
(Portable Electronics includes cell phones or similar equipment or other wireless devices where
voice, pager, or data plan capabilities are incorporated or accessible, such as personal digital
assistants (PDA), wireless aircards, laptops, netbooks, notebooks and other similar unspecified
portable electronic equipment or devices.) Refer to Section Two Device Based Coverage
Rates and Rating Rules for rating details.
B. Account Based Coverage
This coverage is available for Additional Insureds where multiple Portable Electronic devices may
be active under one customer account with the Portable Electronics Vendor. There are two
Account Based Coverage options available to the Portable Electronics Vendor. Coverage
extends either:
1. automatically to all Portable Electronics on the Additional Insureds account; or
2. to only the Portable Electronics on the Additional Insureds account for which the Additional
Insured specifically elects coverage.
If the insurance policy provides only Account Based Coverage, one of the following
endorsements will be attached: CLRI 007, CLRI 008, CLRI 009, CLRI 010, CLRI 016, or CLRI
017. If the insurance policy provides a combination of Account Based Coverage and Device
Based Coverage, one of the following endorsements will be attached: CLRI 011, CLRI 012, CLRI
013, CLRI 014, CLRI 018, or CLRI 019.
Additional Insureds with multiple portable electronic devices are characterized into one of two
groups for rating purposes:
III.
Small Account Based Coverage. Additional Insureds with ten or less devices on their
account that are not characterized as business accounts by their Portable Electronics
Vendor are rated as Small Accounts. Refer to Section Three Small Account Based
Coverage Rates and Rating Rules for rating details as applicable.
Large Account Based Coverage.

Additional Insureds characterized as business
accounts by their Portable Electronics Vendor are rated as Large Accounts. Refer to
Section Four Large Account Based Coverage Rates and Rating Rules for rating details
as applicable.
Aggregate Limit
A. Device Based Coverage
Each customer is limited to a set number of replacements or repairs in any consecutive 12 month
period. When this limit is exhausted, coverage will cease immediately and no further premiums
will be due. Refer to Rule IV. Rate Modification Factors of Section Two Device Based
Coverage Rates and Rating Rules for rating details.
02/2011 Edition
LMIC-PEC-CW-1

B. Account Based Coverage Per Device Limit
Each device under the Additional Insureds account that is enrolled for Account Based Coverage
is limited to a set number of replacements or repairs in any consecutive 12 month period. When
this limit is exhausted for a particular device, coverage will cease immediately and no further
premiums will be due for that device. For rating details, refer to Rule III. Monthly Rates of Section
Three Small Account Based Coverage Rates and Rating Rules or Rule III. Monthly Rates of
Section Four Large Account Based Coverage Rates and Rating Rules, as applicable.
C. Account Based Coverage All Devices Limit
The aggregate limit of replacements or repairs available in any consecutive 12 month time period
is based on the number of devices on the Additional Insureds account and enrolled for Account
Based Coverage. When the applicable Aggregate Limit is exhausted, the Additional Insureds
coverage will cease immediately and no further premiums will be due. For rating details, refer to
Rule III. Monthly Rates of Section Three Small Account Based Coverage Rates and Rating
Rules or Rule III. Monthly Rates of Section Four Large Account Based Coverage Rates and
Rating Rules as applicable.
IV.
Policy Term
Policies will be issued on a continuous until cancelled basis.
V.
Factors or Multipliers
A. Unless otherwise specified, factors or multipliers are to be applied consecutively and not added
together.
B. Rate Modifications listed as % credits or debits are applied multiplicatively as follows: rate x (1
credit) or rate x (1 + debit %).
VI.
Rounding Rule
The indicated monthly premium calculated, after the application of schedule rating, may be rounded
up or down by up to $0.10 to achieve the final monthly premium.
Section Two Device Based Coverage Rates and Rating Rules

I.
Coverage Levels
Five levels of named peril coverage are offered under this program. A table listing the coverage
options is shown below:
Covered Cause
of Loss
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
II.
Physical
Damage
X
X
X
X
Loss
Theft
X
X
X
X
Mechanical and
Electrical
Breakdown
X
X
Rating Tiers
A. When possible, the various models of Portable Electronic devices will be grouped into rating tiers
based on their value and other technical considerations.
02/2011 Edition
LMIC-PEC-CW-2

B. Tier assignments of the current models of Portable Electronic devices will be listed in the
brochure provided to customers upon enrollment.
C. The value of Portable Electronic devices has the potential to decrease materially over time. As
such, the valuation of the various models of Portable Electronics insured by the Company will be
reviewed regularly, and tier assignment changes may result.
D. The number of rating tiers and the maximum and minimum boundaries of the tiers will vary by
insured Portable Electronics Vendor based on the various models of Portable Electronics
supported by the vendor. The table below lists the minimum device value that will be assigned to
each tier by any Portable Electronics Vendor.
Tier 1
None
Minimum Device Value
Tier 2
$50
Tier 3
$150
Tier 4
$250
Tiers 5+
$350
E. The base rates by tier reflect that remanufactured or discounted cost parts are available to the
claim administrator for the repair and replacement of most Portable Electronic devices. For new,
unique models of devices, only new parts at full retail price may be available. To recognize the
impact of extremely limited use of remanufactured or discounted parts on claim severity, the
value of a particular model of device may be increased according to the table below, for tiering
purposes.
% Remanufactured or
Discounted Parts
> 30.0%
10.01% to 30.0%
<= 10.0%
Adjustment to Device
Value for Tiering
No Adjustment
+15% to +20%
+20% to +25%
F. When model information is not readily available or tier rating is not practical due to system
constraints or other limitations, a one-size rate will be applied to all models of devices.
III.
Monthly Base Rates per Customer

A. The table below lists the base rates for each of five standard tiers, as well as the base one-size
rate.
Plan
1
2
3
4
5
Tier 1
$1.92
$2.02
$2.02
$2.72
$2.82
Tier 2
$2.62
$2.72
$2.82
$3.92
$4.12
Tier 3
$3.52
$3.62
$3.72
$5.42
$5.62
Tier 4
$4.02
$4.12
$4.32
$6.32
$6.62
Tier 5
$5.12
$5.12
$5.42
$8.12
$8.52
One-Size
$3.72
$3.72
$3.92
$5.72
$6.02
B. If additional tier breakdowns within the standard five listed above are desired, the base rates for
the additional tiers should be calculated using straight line interpolation between the base rates
and value midpoints of surrounding tiers. If the base deductibles of the surrounding tiers are not
equal, apply the appropriate deductible factor from Rule IV.A.2 to the rate for the higher
surrounding tier to convert it to the same deductible level as the lower surrounding tier, prior to
interpolating the rates.
C. If additional tiers, beyond the upper bound of the fifth tier listed above, are desired the base rates
for the additional higher tiers should be calculated using the following extrapolation formula:
Rate NEW TIER = (Lower Bound NEW TIER / Lower Bound TIER 5) X Rate TIER 5 X 0.90
IV.
Rate Modification Factors

A. Deductibles
02/2011 Edition
LMIC-PEC-CW-3

1. The deductible underlying the base rates differs by tier. The table below shows the base
deductible for each tier.
Base Deductible
Tiers 1 and 2
$50
Tier 3 and One-Size

$50
Tiers 4 and 5+
$75
2. Various optional deductibles are available for each tier. The optional deductibles and their
associated premium factors are shown in the table below.
Optional Deductibles
Tiers 1 and 2
Deductible
Factor
$10
1.200
$20
1.150
$30
1.100
$35
1.075
$40
1.050
$45
1.025
$60
0.960
$70
0.920
$75
0.900
Tier 3 and One-Size

Deductible
Factor
$35
1.075
$40
1.050
$45
1.025
$60
0.960
$70
0.920
$75
0.900
$85
0.855
$100
0.800
Tiers 4 and 5+
Deductible
Factor
$40
1.185
$50
1.130
$60
1.080
$70
1.025
$85
0.950
$100
0.880
$110
0.835
$120
0.800
$125
0.765
$130
0.740
$135
0.720
$140
0.700
$145
0.680
$150
0.660
3. For deductible options not shown, interpolate between surrounding options to determine
deductible factor.
4. For deductible options above the largest deductible option listed for a tier, multiply the
deductible factor for the largest deductible in that tier by 0.95 for every $10 increase in
deductible, and round to the nearest 0.001, to determine the appropriate deductible factor.
For example, a $175 deductible has 2.5 $10 increments above $150. Therefore, the resulting
^2.5
Tier 5 $175 deductible factor is 0.581 (0.581 = 0.660 x (0.95) ).
5. Deductibles by Peril
a. Different deductibles by peril are available under the policy for Plans 3, 4 and 5.
b. The applicable deductible factor will be a weighted average of the factors for the
deductibles associated with each peril. The table below shows the weights that should
be used, by plan.
Covered
Peril
Plan 3
Plan 4
Plan 5
c.
Physical
Damage
0.917
0.579
0.550
N/A
Mechanical and
Electrical
Breakdown
0.083
0.421
0.400
0.050
Loss/Theft
N/A
The following example illustrates the calculation for a Plan 5, Tier 2 risk with a $50
deductible for Physical Damage and Breakdown and a $70 deductible for Loss/Theft.
0.968 = 0.550 x 1.000 + 0.400 x 0.920 + 0.050 x 1.000
6. Declining Deductibles
a. The policy may provide for a deductible that decreases once the Additional Insured has
been continuously insured with no claims for a given length of time.
02/2011 Edition
LMIC-PEC-CW-4

deductibles associated with the various time periods.
c.
The weights are developed using the following equations:

i.
2 Phase Deductible (Loss Free Additional Insured Deductible)
Deductible
Phase
st
1
nd
ii.
Months Since
Enrollment or
Last Claim at
time of Claim
0 to x
3.68% x [1 - 0.963
x forward
100% - 3.68% x [1 - 0.963
Weight
(x+1)
]/[1 - 0.963]
(x+1)
]/[1 - 0.963]
3 Phase Deductible (Good Additional Insured and Loss Free Additional Insured
Deductible)
Deductible
Phase
st
1
Months Since
Enrollment or
Last Claim at
time of Claim
0 to x
nd
x to y
rd
y forward
Weight
3.68% x [1 - 0.963
3.68% x {[1 - 0.963
(y+1)
(x+1)
]/[1 - 0.963]
(x+1)
]/[1 - 0.963] - [1 - 0.963
100% - 3.68% x [1 - 0.963
(y+1)
]/[1 - 0.963]}
]/[1 - 0.963]
d. The following example illustrates the calculation for a Plan 5, Tier 3 risk with a $100
deductible that declines to $50 deductible after 24 months.
25
0.879 = 60.71% x 0.800 + 39.29% x 1.000 = {3.68% x [1 0.963 ]/[1-0.963]} x 0.800 +
25
{100% - 3.68% x [1 0.963 ]/[1-0.963]} x 1.000.
B. Accessory Coverage
1. The base rates shown above contemplate coverage for basic accessories such as the
standard battery, standard cigarette lighter adaptor, standard case and standard charger.
2. Coverage for some accessories such as the standard cigarette lighter adaptor, standard case
and other similar basic accessories may be excluded. If coverage for some basic accessories
is not provided, apply a factor of 0.990 to the rate.
C. Tier Rating Expense Factor
The administration expenses associated with multi-tiered rated insureds are higher than the
expenses of one-size rated insureds. To recognize this expense variance, apply the appropriate
factor from the table below to the rate according to the number of tiers utilized for a given insured.
# of Tiers
1 (One-Size)
23
4
5+
Tier Rating
Expense Factor
0.950
1.000
1.025
1.050
D. Atypical Penetration Adjustment Factor

1. The base rate is modified by a factor based on the insureds historical penetration rate
according to the table below.
02/2011 Edition
LMIC-PEC-CW-5

Penetration
Rate
>70.00%
60.01% to 70.00%
5.01% to 60.00%
3.01% to 5.00%
1.01% to 3.00%
<= 1.00%
Factor
0.60
0.60 to 0.66
1.00
1.18 to 1.21
1.21 to 1.24
1.24
2. If an insured Portable Electronics Vendor does not have a history with this coverage, or
historical experience is not available, apply an Atypical Penetration Adjustment Factor based
on the projected penetration rate for the Portable Electronics Vendor.
E. Aggregate Limit of Replacements or Repairs
The aggregate limit of replacements or repairs can be increased from the base of 2 using the
table below.
Aggregate Limit of
Replacements or
Repairs
2
3
4
5
Factor
1.00
1.10
1.20
1.30
F. Experience Rating
1. The Base Rate listed above is modified by an experience rating factor based on the insureds
historical incurred loss ratio as described below.
Loss Ratio
< 54.6%
54.6% to 65.4%
65.5% to 78.5%
>= 78.6%
Experience Rating
Factor
0.60 to 0.80
0.80 to 1.00
1.00 to 1.20
1.20 to 1.40
2. If an insured vendor does not have a history with this coverage, or historical experience is not
available, apply an experience rating factor of 1.000.
G. Schedule Rating
specific characteristics affecting the exposure of the customers/devices in that tier. The
modifications are totaled on an additive basis and are limited to the applicable state
maximum. Premium eligibility for schedule rating is $500.
Criteria
Geographic Mix
Customer Base
02/2011 Edition
Description
rural areas
Electronics Vendor
Maximum
Credit
15%
Maximum
Debit
15%
15%
15%
LMIC-PEC-CW-6

Criteria
Program
Administration
Expenses
Equipment Mix
Management/
Underwriting
Experience
Persistency
Part Availability
Manufacturers
Warranty
Description
the program
standard
devices
Maximum
Credit
10%
Maximum
Debit
10%
15%
15%
10%
10%
15%
25%
15%
25%
15%
15%

Section Three Small Account Based Coverage Rates and Rating Rules
I.
Coverage Levels
II.
Covered Cause
of Loss
Physical
Damage
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
X
X
X
X
Loss
Theft
X
X
X
X
Mechanical and
Electrical
Breakdown
X
X
Rating Tiers
brochure provided to customers upon enrollment. When an insured Portable Electronics Vendor
offers both Device Based and Account Based Coverage, the same device tiering assignments will
apply to both coverage options.
02/2011 Edition
Tier 1
None
Tier 2
$50
Tier 3
$150
Tier 4
$250
Tiers 5+
$350
LMIC-PEC-CW-7

claim administrator for the repair and replacement of most models of Portable Electronic devices.
For new, unique models of devices, only new parts at full retail price may be available. To
recognize the impact of extremely limited remanufactured or discounted parts on claim severity,
the value of a particular model of device may be increased according to the table below, for
tiering purposes.
% Remanufactured or
Discounted Parts
> 30.0%
10.01% to 30.0%
<= 10.0%
Adjustment to Device
Value for Tiering
No Adjustment
+15% to +20%
+20% to +25%
F. Tiering assignments will be used for determining the applicable deductible only. (See Rule IV.A.
Deductibles of Section Two Device Based Coverage Rates and Rating Rules) Rates will not
vary by tier for customers electing Account Based Coverage.
III.
Monthly Rates
A. Per Device Limit Coverage
1. Calculate a monthly rate by tier by following Rule III. through Rule IV.E of Section Two
Device Based Coverage Rates and Rating Rules.
2. Calculate an average rate across all tiers. The average should be calculated using a
projected distribution of Portable Electronic devices by tier for the insured Portable
Electronics Vendor.
3. Determine the aggregate rate per account by multiplying the average rate by the number of
enrolled devices in the customers account.
4. Apply the appropriate percentage from the table below to the aggregate rate for the account.
Number of
Devices
2
3+
% of rate
85% - 95%
80% - 95%
5. The rate factors listed above assume that all Portable Electronic devices associated with an
enrolled account will be covered. A Portable Electronics Vendor may elect to offer Additional
Insureds the option of insuring only select Portable Electronic devices associated with an
enrolled account. If this option is selected, to reflect the increased underwriting risk, the
factor outlined in Rule III.A.4 above should not be applied.
B. All Devices Limit Coverage
1. Calculate a monthly rate by tier by following Rule III. through Rule IV.D of Section Two
Electronics Vendor.
3. Determine the aggregate rate per account by applying the applicable percentage from the
table below to the average rate across all tiers based on the number of devices under the
account.
02/2011 Edition
LMIC-PEC-CW-8

Number of
Devices
2
3
4
5
6
7
8
9
10
% of rate
130% - 190%
180% - 255%
220% - 300%
265% - 375%
330% - 420%
385% - 455%
440% - 520%
495% - 585%
550% - 650%
4. Aggregate Limit of Replacements or Repairs

a. The aggregate limit of replacements or repairs factor is based on the maximum number
of devices on an Additional Insureds account and enrolled for coverage hereunder. The
base rate listed previously is modified to reflect the aggregate limit of replacements or
repairs per 12 month period.
Number of
Devices
2
3
4
5
6
7
8
9
10
2
1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3
1.30
1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
4
1.50
1.15
1.00
N/A
N/A
N/A
N/A
N/A
N/A
Aggregate Limit of Replacements or Repairs

5
6
7
8
9
10
11
12
1.70 1.85 1.95 2.00 2.05 2.10 2.15 2.17
1.35 1.45 1.55 1.60 1.65 1.70 1.75 1.77
1.10 1.25 1.30 1.40 1.45 1.50 1.53 1.56
1.00 1.10 1.15 1.25 1.30 1.35 1.40 1.42
N/A 1.00 1.08 1.15 1.20 1.25 1.29 1.32
N/A
N/A 1.00 1.07 1.10 1.15 1.20 1.25
N/A
N/A
N/A 1.00 1.06 1.10 1.15 1.19
N/A
N/A
N/A
N/A 1.00 1.05 1.10 1.14
N/A
N/A
N/A
N/A
N/A 1.00 1.05 1.09
13
2.21
1.81
1.59
1.46
1.36
1.30
1.24
1.19
1.14
14
2.24
1.84
1.62
1.49
1.39
1.36
1.29
1.23
1.19
15
2.28
1.88
1.65
1.53
1.43
1.42
1.34
1.28
1.24
b. The rate factors listed above assume that all Portable Electronic devices associated with
an enrolled account will be covered. A Portable Electronics Vendor may elect to offer
Additional Insureds the option of insuring only select Portable Electronic devices
associated with an enrolled account. If this option is selected, a rating factor of 1.10 will
be applied to the factors in Rule III.B.4.a above to reflect the increased underwriting risk.
c.
IV.
If an Additional Insured removes a device from their account with the Portable Electronics
Vendor and the aggregate limit of replacements or repairs is realized, the rate factors
listed above assume that coverage ceases immediately and no further premiums are
due. If the aggregate limit of replacements or repairs is automatically adjusted after
completion of each covered claim based on the total number of devices on the Additional
Insureds account immediately after completion of the claim, a rating factor of 1.05 will be
applied to the factors in Rule III.B.4.a above to reflect the increased underwriting risk.

A. Experience Rating
1. The account rate calculated above is modified by an experience rating factor based on the
insureds historical incurred loss ratio as described below.
Loss Ratio
< 54.6%
02/2011 Edition
Experience Rating
Factor
0.60 to 0.80
LMIC-PEC-CW-9

54.6% to 65.4%
65.5% to 78.5%
>= 78.6%
0.80 to 1.00
1.00 to 1.20
1.20 to 1.40
historical experience is not available, apply an experience rating factor of 1.000.
B. Schedule Rating
Criteria
Geographic Mix
Customer Base
Program
Administration
Expenses
Equipment Mix
Management/
Underwriting
Experience
Persistency
Part Availability
Manufacturers
Warranty
Description
rural areas
Electronics Vendor
the program
standard
devices
Maximum
Credit
15%
Maximum
Debit
15%
15%
15%
10%
10%
15%
15%
10%
10%
15%
25%
15%
25%
15%
15%

Section Four Large Account Based Coverage Rates and Rating Rules
I.
Coverage Levels
Covered Cause
of Loss
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
Physical
Damage
X
X
X
X
Loss
Theft
X
X
X
X
Mechanical and
Electrical
Breakdown
X
X
II. Rating Tiers

02/2011 Edition
LMIC-PEC-CW-10

brochure provided to customers upon enrollment. When an insured Portable Electronics Vendor
offers both Device Based and Account Based Coverage, the same device tiering assignments will
apply to both coverage options.
Tier 1
None
Tier 2
$50
Tier 3
$150
Tier 4
$250
Tiers 5+
$350
claim administrator for the repair and replacement of most models of Portable Electronic devices.
For new, unique models of devices, only new parts at full retail price may be available. To
recognize the impact of extremely limited remanufactured or discounted parts on claim severity,
the value of a particular model of device may be increased according to the table below, for
tiering purposes.
% Remanufactured or
Discounted Parts
> 30.0%
10.01% to 30.0%
<= 10.0%
Adjustment to Device Value

for Tiering
No Adjustment
+15% to +20%
+20% to +25%
F. Tiering assignments will be used for determining the applicable deductible only. (See Rule IV. A.
Deductibles of Section Two Device Based Coverage Rates and Rating Rules) Rates will not
vary by tier for customers electing Account Based Coverage.
III. Monthly Rates
A. Per Device Limit Coverage
Electronics Vendor.
enrolled Portable Electronic devices on the customers account.
4. If all of the Portable Electronic devices on the customers account are enrolled for coverage,
apply a factor between 0.90 and 0.95.
5. A vendor may elect to offer Additional Insureds the option of insuring only select Portable
Electronic devices under an enrolled account. If this option is selected, to reflect the
increased underwriting risk, the factor outlined in Rule III.A.4 above should not be applied.
B. All Devices Limit Coverage
02/2011 Edition
LMIC-PEC-CW-11

Electronics Vendor.
3. Determine the aggregate rate per account by applying the applicable percentages from the
table below to the average rate across all tiers per enrolled device under the account.
Number of
Devices
st
1
nd
th
2 5
th
th
6 10
th
th
11 20
st
th
21 50
st
th
51 100
st
101 +
% of rate
100%
95% - 100%
95% - 100%
95% - 100%
90% - 100%
85% - 100%
80% - 100%
The following example illustrates the calculation for a sample account with 80 devices:
Aggregate Rate per Account = Average Rate x [(1 x 100%) + (4 x 95%) + (5 x 95%) + (10 x
95%) + (30 x 90%) + (30 x 85%)] = Average Rate x 71.55.
of devices on an Additional Insureds account and enrolled for coverage hereunder. The
base rate listed previously is modified to reflect the aggregate limit of replacements or
repairs per 12 month period.
i. 10 or Less Enrolled Devices
Number of
Devices
2
3
4
5
6
7
8
9
10
2
1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3
1.30
1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
4
1.50
1.15
1.00
N/A
N/A
N/A
N/A
N/A
N/A

5
6
7
8
9
10
11
12
1.70 1.85 1.95 2.00 2.05 2.10 2.15 2.17
1.35 1.45 1.55 1.60 1.65 1.70 1.75 1.77
1.10 1.25 1.30 1.40 1.45 1.50 1.53 1.56
1.00 1.10 1.15 1.25 1.30 1.35 1.40 1.42
N/A 1.00 1.08 1.15 1.20 1.25 1.29 1.32
N/A
N/A 1.00 1.07 1.10 1.15 1.20 1.25
N/A
N/A
N/A 1.00 1.06 1.10 1.15 1.19
N/A
N/A
N/A
N/A 1.00 1.05 1.10 1.14
N/A
N/A
N/A
N/A
N/A 1.00 1.05 1.09
13
2.21
1.81
1.59
1.46
1.36
1.30
1.24
1.19
1.14
14
2.24
1.84
1.62
1.49
1.39
1.36
1.29
1.23
1.19
15
2.28
1.88
1.65
1.53
1.43
1.42
1.34
1.28
1.24
ii. More than 10 Enrolled Devices

Use the following formula: Z ^ (A / B) + (1 Z) ^ (A / B), rounded to 3 decimal
places, where,
A = # of Devices on the Account
B = # of Replacements
Z = Minimum of 0.999 and 0.96 x (1.00375) ^ (A / 10), rounded to 3 places
b. The rate factors listed above assume that all Portable Electronic devices associated with
an enrolled account will be covered. A Portable Electronics Vendor may elect to offer
Additional Insureds the option of insuring only select Portable Electronic devices
associated with an enrolled account. If this option is selected, a rating factor of 1.10 will
be applied to the factors in Rule III.B.4.a above to reflect the increased underwriting risk.
02/2011 Edition
LMIC-PEC-CW-12

c.
If an Additional Insured removes a device from their account with the Portable Electronics
Vendor and the aggregate limit of replacements or repairs is realized, the rate factors
listed above assume that coverage ceases immediately and no further premiums are
due. If the aggregate limit of replacements or repairs is automatically adjusted after
completion of each covered claim based on the total number of devices on the Additional
Insureds account immediately after completion of the claim, a rating factor of 1.05 will be
applied to the factors in Rule III.B.4.a above to reflect the increased underwriting risk.
IV. Rate Modification Factors

Loss Ratio
< 54.6%
54.6% to 65.4%
65.5% to 78.5%
>= 78.6%
Experience Rating
Factor
0.60 to 0.80
0.80 to 1.00
1.00 to 1.20
1.20 to 1.40
historical experience is not available, apply an experience rating factor of 1.000.
B. Schedule Rating
Criteria
Geographic Mix
Customer Base
Program
Administration
Expenses
Equipment Mix
Management/
Underwriting
Experience
Persistency
Part Availability
Manufacturers
Warranty
Description
rural areas
Electronics Vendor
the program
standard
devices
Maximum
Credit
15%
Maximum
Debit
15%
15%
15%
10%
10%
15%
15%
10%
10%
15%
25%
15%
25%
15%
15%
02/2011 Edition
LMIC-PEC-CW-13
SERFF Tracking #:
ASTP-128484141
State Tracking #:
12-5431; 12-5432
Company Tracking #:
State:
California
TOI/Sub-TOI:
Product Name:
Supporting Document Schedules

Satisfied - Item:
Comments:
Attachment(s):
CA RateApplication022812 (REV).pdf
CA Forms List-tab 12a Forms.pdf
Item Status:
Status Date:
Satisfied - Item:
Comments:
Third Party Authorizations
Attachment(s):
Asurion Filing Authorization LMIC_061711_ final doc.pdf

Asurion Filing Authorization LIUI_ 061711_ final doc (2).pdf
Item Status:
Status Date:
Satisfied - Item:
Comments:
Attachment(s):
Item Status:
Status Date:
Forms List
Satisfied - Item:
Comments:
Attachment(s):
Item Status:
Status Date:
Exhibits
Satisfied - Item:
Comments:
Attachment(s):
Item Status:
Status Date:
FORMS LIST.pdf
EXHIBIT 17 - California.pdf
LMIC Explanatory Memo Retail Final R_F 20120519 CL-CA.pdf
STATE OF CALIFORNIA
DEPARTMENT OF INSURANCE (CDI)
Edition Date:
2/28/2012
Company Name
Line of Insurance
Liberty Mutual Insurance

INLAND MARINE
PRIOR APPROVAL RATE APPLICATION

Completed by: Debbie Moore
Your File #:
Date: 6/15/2012
DEPARTMENT USE ONLY
ASTP-128484141
( 15 Characters Maximum)
CD (plus 1 paper copy)
SERFF
Does this filing include a variance request?
Paper (1 original plus 1 copy)

N
Filing No.:
SERFF No.:
Is this a variance request submitted after the prior approval application to
No
which it applies?
Date Filed:
If yes, provide the applicable CDI File Number:
Compliance Date:
Does this file contain group data?
Date Public Notified:
Note: Complete page 2 if this is a group filing
Deemer Date:
Is this a specialty filing?
Intake Analyst:
Latest applicable CDI file number in this line, subline and/or program:
Bureau & Senior:

Yes
Group Filing:
Company Name
No
X-Reference No.:
NAIC Company Code
23043
Rate
New Program
Rule
Form
Variance
% Change
Group Name Liberty Mutual Group

NAIC Group Code
111
Organized under the Laws of the State of
Line Type
Massachusetts
Line of Insurance:
Subline 09.0007 Communication Equipment (Cellular Telephones
Program Portable Electronics Coverage
Home Office 175 Berkeley Street; Boston, MA 02116

Name and Title of Contact Person
Debbie Moore
Toll Free Phone No.:
Fax No.:
Email Address
debbie.moore@asurion.com
Mailing Address
300 S. Wacker Drive, Suite 1350, Chicago, IL 60606
I declare under penalty of perjury under the laws of the State of California, that the information filed is true, complete, and correc
Debbie Moore
June 15, 2012
312-583-2043
Authorized Signature
Date of Filing
Telephone Number
Important note: Refer to CDI website at http://www.insurance.ca.gov/0250-insurers/0800-rate-filings/for the most current

rate template and prior approval factors.
(General Information)
Page 1
STATE OF CALIFORNIA
Edition Date:
2/28/2012
Company Name
Line of Insurance

INLAND MARINE
INSURER GROUP MULTI-COMPANY FILING

For private passenger auto insurance only, does CIC, 1861.16(c) apply?
No
If yes, please complete (Super Group) Exhibit 19.

List each insurance company in alphabetical order.
Company Name
CDI Filing No.

( Department use only )
NAIC Company Code
Company Name
23043
CDI Filing No.

NAIC Company Code
Company Name
19917
CDI Filing No.

NAIC Company Code
Company Name
CDI Filing No.

NAIC Company Code
Company Name
CDI Filing No.

NAIC Company Code
Company Name
CDI Filing No.

NAIC Company Code
Company Name
CDI Filing No.

NAIC Company Code
Company Name
CDI Filing No.

NAIC Company Code
Company Name
CDI Filing No.

NAIC Company Code
Company Name
CDI Filing No.

NAIC Company Code

(Insurer Group Information)
Page 2
STATE OF CALIFORNIA
Edition Date:
2/28/2012
Company Name:
Line of Insurance:

INLAND MARINE
PROPERTY AND LIABILITY FILING SUBMISSION DATA SHEET

The purpose of this filing is as follows: (More than one may be marked )
TYPE OF FILING
PRIOR APPROVAL RATE APPLICATION

PAGES and EXHIBITS REQUIRED
New Program ( Including adoption of advisory organization loss costs,

forms and rules.)
Pages 1 through 7, 10, 12, 13 & 14,

plus exhibit 17
Rates ( Including adoption of advisory organization loss costs. )

Increase rates
Pages 1 through 10, 13 & 14, plus exhibits
Decrease rate
Zero Overall rate impact
Filed together with the prior approval application to which it

applies.
Page 11 and exhibit 13
Filed after the prior approval application to which it applies.
Pages 1 through 6, 11, plus exhibit 13
Variance
Coverage Forms ( Including adoption of advisory organization forms. )

With rate impact
Pages 1 through 10, 12a, 13 & 14 plus exhibits
Without rate impact
Pages 1 through 5, 12a
Rules ( Including adoption of advisory organization rules. )

With rate impact
Pages 1 through 10, 12b, 13 & 14 plus exhibits (
Without rate impact
Pages 1 through 5, 12b, Exhibit 20
All Private Passenger Automobile class plans must be filed separately from
the Prior Approval Rate Applications.

(Filing Data)
Page 3
(including exhibit 20)

(Filing Data)
Page 3
STATE OF CALIFORNIA
Edition Date:
2/28/2012
Company Name: Liberty Mutual Insurance Company

Line of Insurance: INLAND MARINE
PROPERTY AND LIABILITY FILING SUBMISSION DATA SHEET (Continued)
Proposed Earned Premium Per Exposure:

Proposed Overall Rate Change
COVERAGE*
1.
60.00
0.00%
INDICATED
CHANGE (%)
PROPOSED
CHANGE (%)
ADJUSTED
EARNED PREMIUM*
PROJECTED
EARNED PREMIUM
0.00%
0.00%
100,000
TOTAL:
0.00%
0.00%
100,000
2.
3.
4.
5.
6.
7.
8.
9.
10.
Total earned premium must include all income derived from miscellaneous fees and other charges.
* Commercial Auto Liability and Physical damage must be combined in one application, with separate rate templates for liability and
physical damage.
* Adjusted earned premium is the historical earned premium for the most recent year adjusted to the current rate level and trended to
the average date of loss of the proposed rating period.
(Filing Data Continued)
Page 4
STATE OF CALIFORNIA
Edition Date:
2/28/2012

FILING CHECKLIST
Use this checklist to assemble a complete application
Prior Approval Rate Application, Page 1
Group Filing, Page 2
Property and Liability Filing Submission
Data Sheet, Page 3
Property and Liability Filing Submission
Data Sheet, Page 4
Filing Checklist, Page 5
Supporting Data Exhibits, Page 6
Ratemaking Data and Template (s), Page 7
Reconciliation of Direct Earned Premium, Page 8
Additional Data Required by Statute, Page 9
Miscellaneous Fees and Other Charges, Page 10
Variance Request, Page 11
Forms and Rules, Page 12
Excluded Expenses, Page 13
Projected Yield and Federal Income Tax Rate on Investment Income, Page 14
Filing Memorandum
See the prior approval rate filing instructions regarding the following attachments.
Printed Rate and Rule Manual Pages
Underwriting Rules
Forms (Attach all independent forms and list all advisory organization forms )
Copies of Reinsurance Agreements
( Applies only to Medical Malpractice with facultative reinsurance attachment points above one million dollars and
Earthquake, where the cost of reinsurance is included in the rate development.)

(Filing Checklist)
Page 5
STATE OF CALIFORNIA
Edition Date:
2/28/2012

SUPPORTING DATA EXHIBITS

Use this document to assemble a complete application
Exhibit 1:
Filing History
Exhibit 2:
Rate Level History
Exhibit 3:
Policy Term Distribution
Exhibit 4:
Premium Adjustment Factor
Exhibit 5:
Premium Trend Factor
Exhibit 6:
Miscellaneous Fees and

Other Charges
Exhibit 7:
Loss and Defense & Cost Containment Expense

( DCCE ) Development Factors
Exhibit 8:
Loss and DCCE Trend
Exhibit 9:
Catastrophe Adjustment
Exhibit 10:
Credibility Adjustment
Exhibit 11:
Ancillary Income
Exhibit 12:
Reinsurance Premium and Recoverables
Exhibit 13:
Variance
Exhibit 14:
Insurer's Ratemaking Calculations
Exhibit 15:
Rate Distribution
Exhibit 16:
Rate Classification Relativities
Exhibit 17:
New Program
Exhibit 18:
Group Filing
Exhibit 19:
Super Group Corporate Structure Verification (PPA only)
Exhibit 20:
Rules
Exhibit 21:

(Supporting Data Exhibits)
Page 6
Instructions for completing Prior Approval Rate Template (in application) :

*
A separate rate template is required for each coverage (i.e. BI,PD,MP,UM,Comp&Coll) for which a
separate premium is charged. Download and complete a multi-coverage template (PPA for
personal auto) if more than one template is needed.
Enter data in lined boxes on RateMakingData page only (Do not enter data directly in Template.).
For more than three years of data, click + button.
In the rate making data tab, enter the following data: Line Description (select from menu);
Coverage; Marketing System (percentage of each system used, totaling 100%); Prior Effective
Date (of current rates); Proposed Effective Date (of proposed new rates); statistical period used;
one or more years of appropriate data.
Enter numerical data only; no comments please. (For inapplicable fields: 0 for $ or %; 1.00 for
factors)
Enter Variance data, only if supported by Variance Request. Final decisions regarding variances
will be made by CDI and/or administrative hearing.
If you are filing Advisory Organization Loss Costs with a Loss Cost Multiplier, read the LCM
Instructions tab and complete the LCM template.
For results, see Template tab (Disregard Reinsurance indication if not applicable).
RATEMAKING DATA
(Click + to expand for more than 3 years; - to contract)
Completed by
Debbie Moore
Date Completed
6/15/2012
Company/Group Liberty Mutual Insurance Company

Line Description INLAND MARINE
Coverage
I
%Captive
%Direct
Marketing System:
Prior Effective Date (current rates)
Proposed Effective Date (new rates)
CDI File Number (Department use only ) 0
N
Does the data provided below reflect a Request for Variance?
Data below is:
%Independent (Must add up to 100%)

100.00%
Variance #:
Accident Year Data
2nd Prior Year
1st Prior Year
Most Recent
Year
Projected*/ New
Program**
1 California Direct Written Premium
100,000
2 California Direct Earned Premium
100,000
3 Premium Adjustment Factor (Developed in Exhibit 4)

4 Premium Trend Factor * (Developed in Exhibit 5)
5 Miscellaneous Fees and Flat Charges (Not included in Line 2;
Developed in Exhibit 6)
6 Earned Exposure Units
1,667
7 Historic Losses (Projected for New Programs)
68,500
8 Historic Defense and Cost Containment Expense (DCCE)
9 Loss Development Factor (Developed in Exhibit 7)

10 DCCE Development Factor (Developed in Exhibit 7)
11 Loss Trend Factor* (Developed in Exhibit 8)
12 DCCE Trend Factor* (Developed in Exhibit 8)
13 Catastrophe Adjustment Factor (Developed in Exh 9)
14 Credibility Factor for Losses & DCCE (Developed in Exhibit 10)
15 Excluded Expense Factor (From Page 13)
0.19%
16 Ancillary Income (Developed in Exhibit 11)

17 Projected Federal Income Tax Rate on Investment Income (From
Page 14)
18 Projected Yield (From Page 14)
28.24%
3.49%
Complete 19, 20 & 21 For Earthquake and certain Medical

Malpractice with Reinsurance Only (see instructions)
19 Direct Commissions
20 Reinsurance Premium
(Developed in Exhibit 12)
21 Reinsurance Recoverables (Developed in Exhibit 12)
Variance Change to Leverage on the basis that the insurer either

writes at least 90% of its direct earned premium in one line or
writes at least 90% of its direct earned premium in California.
(Must be accompanied by Variance Request, subject to CDI
approval)
Variance Change to Efficiency Standard (Must be accompanied
by Variance Request, subject to CDI approval)
For all trend factors, the Projected Column should reflect the
annual trend expressed as a percentage.
** For New Programs, please see Rate Filing Instructions, Page 4.

(Ratemaking Data)
Page 7
STATE OF CALIFORNIA
Edition Date:
2/28/2012
Company Name
Line of Insurance

INLAND MARINE
STATUTORY PAGE 14 CALENDAR YEAR DATA

RECONCILIATION OF DIRECT EARNED PREMIUM DATA PER PROGRAM
Program
Most Recent
CDI File #
2nd
1st
Most
Prior
Prior
Recent
Year
Year
Year
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
TOTAL
Statutory
Page 14
Difference
Explain the Differences:
This exhibit requires insurers to itemize each program until all data is reconciled to the corresponding annual statement line
of insurance ( Statutory Page 14 ).
For residual market data, a filing number is not required.

(Premium Reconciliation)
Page 8
STATE OF CALIFORNIA
Edition Date:
2/28/2012

Line of Insurance:
INLAND MARINE
ADDITIONAL DATA REQUIRED BY STATUTE*

Calendar Year
Year
DATA
1.
Number of claims outstanding at beginning of year
2.
Number of claims during the year
3.
Number of claims closed during the year
4.
Number of claims outstanding at year's end ( (1) + (2) - (3) )
5.
Unearned Premiums
6.
Dollar amount of claims paid
7.
Net loss reserves for outstanding claims excluding claims incurred but not reported
8.
Net loss reserves for claims incurred but not reported
9.
Losses incurred as a percentage of premiums earned - including IBNR
10.
Net investment gain or loss and other income or gain or loss allocated to the line.
11.
Net income before federal and foreign income taxes ( line 10 plus line 15 )
12.
Total number of policies in force on the last day of the reporting period
13.
Total number of policies cancelled
14.
Total number of policies non-renewed
15.
Net underwriting gain or loss

( =CY earned premiums minus CY incurred loss minus CY incurred expense )
16.
Separate allocations of expenses for:

a) commissions and brokerage expense,
b) other acquisition costs,
c) general office expenses,
d) taxes, licenses and fees,
e) loss adjustment expense ( DCCE & AOE ), and
f) other expenses
*CIC 1857.7, CIC 1857.9 and CIC 1864

(Additional Data)
Page 9
STATE OF CALIFORNIA
Edition Date:
2/28/2012

MISCELLANEOUS FEES AND OTHER CHARGES

No
Do any fees or installment finance charges apply to this program?
If yes, identify the fee and the amount charged for each type of fee and for each transaction.
INDIVIDUAL POLICY CHARGES

New Business
Renewals
Policy fee
Installment fee
Installment finance charges ( ancillary income )
APR
Endorsement fee
Inspection fee
Cancellation fee
Reinstatement fee
Late fee
SR 22
Non-sufficient funds ( NSF ) fee ( ancillary income )
Membership dues ( ancillary income )
Other, specify:
Except for installment finance charges, NSF fees, and membership dues, data relating to fees must be included in the ratemaking data,
Page 7, Line 2 ( direct earned premium) or Line 5 ( miscellaneous fees ) and Exhibit 6, miscellaneous fees, must be completed. Refer to
the instructions for additional information.

(Miscellaneous Fees)
Page 10
STATE OF CALIFORNIA
Edition Date:

Line of Insurance:
INLAND MARINE
2/28/2012
REQUEST FOR VARIANCE
1.
Identify each variance requested.
((See below (F))
2.
Identify the extent or amount of the variance requested and the applicable component of the ratemaking formula. [ Complete Exhibit 13 ]
3.
Set forth the expected result or impact on the maximum and minimum permitted earned premium that the granting of the variance will have as compared to the expected result if the
variance is denied. [ Complete Exhibit 13 ]
4.
IMPORTANT: Identify the facts and their source justifying the variance request and provide the documentation supporting the amount of the change to the component of the
ratemaking formula. (Complete Exhibit 13)
IDENTIFY THE BASES FOR VARIANCE - Refer to CCR 2644.27 (f) for the full regulation text.
Maximum Permitted Rate Change % Excluding Variance

(Change At Max Per Template)
1.
Relief from the efficiency standard for bona fide loss-prevention and loss reduction activities.
A.
B.
Allocated cost for SIU.

Expenses for loss prevention programs.
Maximum Permitted Rate Change % With Only This Variance

2.
Relief from the efficiency standard due to any of the following:

A.
B.
C.
Higher quality of service, as demonstrated by objective measures of consumer satisfaction; or

Demonstrated superior service to underserved communities ( CCR 2646.6 ); or
Significantly smaller or larger than average California policy premium, including any applicable fees.

3.
The leverage factor should be different from the leverage factor determined pursuant to section 2644.17 on the basis that the insurer either writes at least
90% of its direct earned premium in one line or writes at least 90% of its direct earned premium in California, and its mix of business presents investment
risks different from the risks that are typical of the line as a whole.
4.
Relief from operation of the efficiency standard for a line of insurance in which the insurer has never written over $1 million in earned premium annually
and the insurer is making a substantial investment in order to enter the market.
5.
The minimum permitted earned premium should be lower on the basis of the insurer's certification that the rate will not cause the insurer's financial
condition to present an undue risk to its solvency.
6.
The insurer's financial condition is such that its maximum permitted earned premium should be increased in order to protect solvency.

7.
The loss development formula in CCR 2644.6 does not produce an actuarially sound result because:
A.
B.
C.
There is not enough data to be credible

There is not enough years of data to fully calculate the development to ultimate;
There are changes in the insurer's reserving or claims closing practices that significantly affect the data; or,
D.
E.
F.
There are changes in coverage or other policy terms that significantly affect the data; or,
There are changes in the law that significantly affect the data.
There is a significant increase or decrease in the amount of business written or significant changes in the mix of business.

8.
The trend formula in CCR 2644.7 does not produce the most an actuarially sound result because:
A.
There is a significant increase/decrease in the amount of business written or changes in the mix of business:
B.
C
There are not enough years of data to calculate the trend factor;
There is a significant change in the law affecting frequency or severity of claims;
D
E.
It can be shown that a trend calculated over a period of at least 4 quarters other than a period permitted pursuant to
section 2644.7(b) is more reliable prospectively.
There are changes in the insurer's claims closing practices that significantly affect the data; or,
F.
There are changes in coverage or other policy terms that significantly affect the data.

9.
The maximum permitted earned premium would be confiscatory if applied.

Overall Maximum Permitted Rate Change %
Not withstanding any other section of these regulations, the aggregate total adjustment to
the efficiency standard for all variances combined shall not exceed the difference between
the insurer's most recent year total expense ratio excluding defense and cost containment
expenses and the efficiency standard.
Most Recent
Year Total
Expense
Ratio
STATE OF CALIFORNIA
Edition Date:
Company Name:
Line of Insurance:
Liberty Mutual Insurance

INLAND MARINE
2/28/2012
FORMS
Insurers who wish to use a new or replacement form in connection with a new or existing program must furnish the following information and documentation for our review.
Revisions must be highlighted and the corresponding manual pages must be provided.
FORM NO.
TITLE
TYPE
SOURCE
SOURCE
FORM NO * CATEGORY
Restricts Broadens
Rate
Coverage Coverage
Impact
%
[ Yes/ No ] [ Yes/ No ] [ Yes / No ] Change
Flat
Rate
1] New:
Old:
2] New:
Old:
3] New:
Old:
4] New:
Old:
5] New:
Old:
REQUIRED RESPONSES FOR THE ITEMS ABOVE

TYPE:
SOURCE
CATEGORY
1) Application
2) Endorsement
3) Policy
4) Other ( Please define )
1) ISO*
2) Other Advisory Organization*
3) Company
4) Other (describe)
1) New, mandatory
2) New, optional
3) Replacement, mandatory
4) Replacement, optional
5) Withdrawn, mandatory
6) Withdrawn, optional
* Provide California Dept. of Insurance number ( CDI# ) under the column identified as Source Form No.
Additional Information and Documents Required

Describe the purpose of the form or form change
For NEW FORMS, furnish a copy of the form to be filed, unless identical to an advisory organization form. If the form is a new endorsement to the policy, describe any changes in coverage under the policy. Describe what
adjustments, if any, will be made to the premium due to the introduction of the forms.
For REVISED FORMS, describe any changes in coverages between the proposed form and the current form. Reference pertinent sections of each form affected. Brackets [ ] should be used to identify any deletions on the
current form and underline all changes in the revised form. Describe what adjustments, if any, will be made to the premium due to the revisions.

(Forms)
Page 12(a)
STATE OF CALIFORNIA
Edition Date:
2/28/2012
Company Name:
Line of Insurance:
Liberty Mutual
INLAND MARINE
RULES
Insurers wishing to make a rule change filing must provide the following information.
Exhibit 20 may be completed to provide additional information.
Identify the option(s) that applies.
Introducing a new rule
Revising an existing rule
Adopting an approved Advisory Organization rule
Withdrawing an approved rule
Use the following as a checklist to provide the required information.
If introducing a new rule or revising an existing rule, provide:
The purpose for the rule or an explanation for revising an existing rule
A copy of the current and proposed manual page corresponding to the rule
The charge for the rule. Support or justify the charge and provide the rate or premium
development method.
The rate impact of the rule to the current book of business, showing the calculation.
Advise if the rule is: Optional
Mandatory
If withdrawing an approved rule, provide:

An explanation for withdrawing the rule
A copy of the current and proposed manual page(s) corresponding to the withdrawn rule
The rate impact of the withdrawn rule to the current book of business
If adopting an approved Advisory Organization rule(s), specify the

approved CDI filing number(s) of the AO rule(s):
Insurer Comments: This is a new program, so all rules are new.

(Rules)
Page 12(b)
STATE OF CALIFORNIA
Edition Date:
Liberty Mutual Insurance Com

INLAND MARINE
Company Name:
Line of Insurance:
2/28/2012
EXCLUDED EXPENSE FACTOR

(Insurer Group Data)
Company Organization:
Stock
(Enter Year)
Countrywide direct earned premium:

Countrywide direct earned premium for lines of business subject
to Proposition 103:
2nd Prior Year
1st Prior Year
Most Recent
Year
2008
2009
2010
26318540021
24887576664
24891871591
20587552580
20189083476
20661992356
2644.10 (b): Executive Compensation

2nd Prior Year
2008
Cash & Salary
Bonus
1st Prior Year

2009
Cash & Salary
Bonus
Most Recent Year

2010
Cash & Salary
Bonus
1st Highest Paid
5,305,775
2,336,250
5,241,620
2,463,109
781,923
7,274,790
2nd Highest Paid
3,240,325
2,343,415
3,845,966
1,995,016
804,769
4,590,821
3rd Highest Paid
1,830,513
472,775
2,370,728
543,899
418,912
1,505,905
4th Highest Paid
1,380,710
197,228
1,497,119
345,182
439,615
1,330,769
5th Highest Paid
321,923
1,028,464
344,808
976,833
369,615
1,109,330
2nd Prior Year

1st Prior Year
Most Recent Year
2008
2009
2010
Max Permissible
Excessive
Max Permissible
Excessive
Max Permissible
Excessive
Exc Comp
Compensation
Exc Comp
Compensation
Exc Comp
Compensation
1st Highest Paid
1,752,021
5,890,004
1,738,173
5,966,556
1,754,590
6,302,123
2nd Highest Paid
894,672
4,689,068
888,590
4,952,392
895,799
4,499,791
3rd Highest Paid
814,728
1,488,560
808,668
2,105,959
815,852
1,108,965
4th Highest Paid
666,018
911,920
661,375
1,180,926
666,879
1,103,505
5th Highest Paid
566,850
783,537
563,074
758,567
567,551
911,394
Total Excessive Executive Comp:
13,763,089
14,964,400

(Excluded Expense Factor)
13,925,777
P13a
STATE OF CALIFORNIA
Liberty Mutual Insurance Com

INLAND MARINE
Company Name:
Line of Insurance:
Excluded Expense Factor
Countrywide Data
Most Recent
Year
2010
2nd Prior Year

2008
1st Prior Year

2009
2,306,901
2,821,855
2,226,120
2644.10 (b): Excessive Executive Compensation
13,763,089
14,964,400
13,925,777
2644.10 (c): Bad faith judgments and associated DCCE
22,340,747
32,575,838
15,537,812
2644.10 (a): Political contribution and lobbying
2644.10 (d): All costs for unsuccessful defense of discrimination claims

2644.10 (e): Fines and penalties
Included in (e)
Included in (e)
Included in (e)
1,660,946
1,018,288
806,559
2644.10 (f): Institution advertising expenses
12,607,868
5,914,948
5,703,450
2644.10 (g): Excessive payments to affiliates
Total excluded expenses
52,679,551
57,295,329
38,199,718
Excluded expense factor
0.20%
0.23%
0.15%
3-year average excluded expense factor
0.19%

(Excluded Expense Factor)
P13b
STATE OF CALIFORNIA
Company Name:

Edition Date:
2/28/2012
PROJECTED YIELD AND FEDERAL INCOME TAX RATE ON INVESTMENT INCOME
Short Term
Assets
Line number
One year or less
Intermediate
Term Assets
Over 1 yr
Over 5 yrs
through 5 yrs
through 10 yrs
Long Term
Assets
Over 10 yrs
through 20 yrs
Over 20 yrs
1.7
US governments
275,841,798
1,113,640,687
694,344,644
2,223,756,469
2.7
All other governments
134,511,857
1,121,973,036
196,076,792
13,936,106
3.7
States, territories and

possessions
60,637,905
416,576,172
689,776,109
695,140,265
45,757,898
4.7
Political subdivisions
28,471,431
247,041,744
622,285,798
880,588,820
62,109,581
5.7
Special revenue and

assessment obligations
1,154,642,625
4,081,920,476
2,606,689,853
3,647,012,891
1,438,573,615
2,759,867,407
7,431,735,499
5,234,766,624
510,060,200
590,349,841
3,295,613
42,130,286
20,000,000
6.7
Public utilities unaffiliated
7.7
Industrial and
miscellaneous
8.7
Credit tenant loans
9.7
Parent, subsidiaries and

affiliates
One year or less
43,663,408
Over 1 year through 10 years
Over 10 years
(1)
US government bonds Sum

of line 1.7 and 2.7
410,353,655
3,126,035,159
2,281,355,983
(2)
Other taxable bonds

Sum of line 6.7, 7.7, 8.7, 9.7
and half of 5.7
3,337,188,720
16,014,102,901
3,705,333,580
(3)
Tax exempt bonds

Sum of line 3.7, 4.7, and
half of 5.7
666,430,649
5,319,984,988
4,226,389,817
Data on line 1.7 through 9.7 are from the insurer group's most recent consolidated statutory annual statement, schedule D,
part 1A, section 1.
Page 14a

(Yield Tax Worksheet)
Invested
Assets
[1]
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
US government bonds
(A) Short
(B) Intermediate
(C) Long
Other taxable bonds
(A) Short
(B) Intermediate
(C) Long
Tax exempt bonds
(A) Short
(B) Intermediate
(C) Long
Common Stock
(A) Dividends
(B) Capital gains
Preferred stock
dividends
Mortgage loans
Real estate
Cash**
Other***
(A) Dividends
(B) Capital gains
(10) Total
Sum of line (1) thru (9)
Currently
Available
Yield *
[2]
Return On
Invested Assets
[3]=[1]*[2]
Federal
Income
Tax Rate
[4]
Federal Income
Taxes
[5]=[3]*[4]
410,353,655
3,126,035,159
2,281,355,983
0.07%
2.04%
2.80%
273,569
63,666,916
63,801,922
35.00%
35.00%
35.00%
95,749
22,283,421
22,330,673
3,337,188,720
16,014,102,901
3,705,333,580
0.22%
3.32%
4.96%
7,453,055
532,153,492
183,799,984
35.00%
35.00%
35.00%
2,608,569
186,253,722
64,329,995
666,430,649
5,319,984,988
4,226,389,817
2,927,481,680
0.15%
2.01%
3.74%
967,435
106,982,077
158,111,484
5.25%
5.25%
5.25%
50,790
5,616,559
8,300,853
1.86%
7.39%
54,451,159
216,243,313
14.18%
34.10%
7,718,452
73,738,970
5.63%
4.96%
3.25%
0.07%
29,453,966
51,294,848
10,875,919
179,386
14.18%
35.00%
35.00%
35.00%
4,175,100
17,953,197
3,806,572
62,785
1.86%
7.39%
152,713,444
606,474,898
14.18%
34.10%
21,647,131
206,807,940
523,161,022
1,034,083,464
334,987,241
269,078,394
8,210,400,240
52,386,367,491
2,238,896,869
647,780,477
Data in column [1], line 4 through (9), are from the insurer group's most recent consolidated statutory annual statement page 2 - Assets.
* Currently available yields are defined in CCR 2644.20. Latest values are posted at
http://www.insurance.ca.gov/0250-insurers/0800-rate-filings/0200-prior-approval-factors/
** Annual statement page 2, line 5, cash only. Cash equivalents and short-term investments are included in Schedule D.
*** Annual statement page 2, line 6 through 9.
Page 14b

Invested
Assets
[1]
(10) Total
line (10)
exhibit 13, page 2
(11) Investment expense
Annual Statement (AS)
page 11, line 25
(12) Total
after investment expense
line (10) - line (11)
(13) Federal income tax rate
line (12)
Currently
Available
Yield
[2]
52,386,367,491
Return On
Invested Assets
[3]=[1]*[2]
Federal
Income
Tax Rate
[4]
2,238,896,869
228,627,516
52,386,367,491
647,780,477
35.00%
2,010,269,353
column [5] / column [3]
Federal Income
Taxes
[5]=[3]*[4]
80,019,631
567,760,846
28.24%
3.84%
(14) Projected yield

on invested assets
line (12)
column [3] / column [1]
Most Recent Year

(15) Loss reserves
AS page 3, line 1
(16) Loss adjustment
expense reserves
AS page 3, line 3
(17) Unearned premium
reserves
AS page 3, line 9
(18) Surplus as regards
to policyholders
AS page 3, line 35
(19) Total reserves and
surplus
Sum of line (15) to (18)
26,411,253,627
5,488,738,123
9,599,134,743
16,038,558,873
57,537,685,366
(20) Projected yield

adjusted to reserve and surplus base
line (14) * line (12) / line (19)
3.49%
Page 14c

RATE TEMPLATE
Edition Date:
2/28/2012
(No input by filer)

0
INLAND MARINE
0
6/22/2012
6/22/2012
CDI FILE NUMBER:

COMPANY/GROUP:
LINE OF INSURANCE:
COVERAGE:
PRIOR_EFF_DATE:
PROPOSED_EFF_DATE:
Completed by: Debbie Moore

Date:
6/15/2012
DATA PROVIDED BY FILER

Year:
WRT_PREM
ERN_PREM
PREM_ADJ
PREM_TREND
MISCELLANEOUS_FEES (& other flat charges)
EARNED_EXP
LOSSES
DCCE
LOSS_DEV
DCCE_DEV
LOSS_TREND
DCCE_TREND
CAT_ADJ
CREDIBILITY
EXPENSE EXCLUSION FACTOR
ANC_INC
FIT_INV
YIELD
PRIOR2
PRIOR1
RECENT
0
0
1.000
1.000
0
0
0
0
1.000
1.000
1.000
1.000
1.000
0
0
1.000
1.000
0
0
0
0
1.000
1.000
1.000
1.000
1.000
PROJECTED/
SUMMARY
0
100,000
0
100,000
1.000
1.000
0.000
0
0
0
1,667
0
68,500
0
1
1.000
1.000
1.000
0.000
1.000
0.000
1.000
100.00%
0.19%
0
0
28.24%
3.49%
CDI PARAMETERS:
35.00%
28.71%
1.18
2.35%
0.85
0.33
0.62
1.24% May 2012
7.24%
-6.00%
FIT_UW
EFF_STANDARD
LEVERAGE
PREMIUM_TAX_RATE
SURPLUS_RATIO
UEP_RES_RATIO
LOSS_RES_RATIO
RISK FREE RATE OF RETURN
MAXIMUM RATE OF RETURN
MINIMUM RATE OF RETURN
CDI CALCULATIONS:
ADJ_PREM
ADJUSTED_LOSSES
ADJUSTED_DCCE
ADJUSTED_LOSS+DCCE_RATIO
TRENDED_CURRENT_RATE_LEVEL_PREMIUM
LOSS+DCCE_PER_EXP
COMP_LOSS+DCCE_PER_EXP
CRED_LOSS_PER_EXP
ANC_INC_PER_EXP
FIXED_INV_INC_FACTOR
VAR_INV_INC_FACTOR
ANNUAL_NET_TREND
COMP_TREND
MAX_PROFIT
MIN_PROFIT
UW_PROFIT
MAX_DENOM
MIN_DENOM
MAX_PREMIUM
MIN_PREMIUM
CHANGE_AT_MIN
0
0
0
0.00%
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
0
0
0
0.00%
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
0
0
0
0.00%
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
100,000
68,500
1
68.50%
59.99
41.09
40.79
41.09
0.00
2.39%
4.55%
0.00%
0.00%
9.47%
-7.85%
3.29%
0.664
0.837
$60.43
$47.92
-20.11%
0.73%
CHANGE_AT_MAX
Alternate Calculation with Reinsurance
COMMISSION_RATE
RE_PREM
RE_RECOV
RE_PREM_PER_EXP
RE_RECOV_PER_EXP
COMP_LOSS_RE
RMAX_PREMIUM
RCHANGE_AT_MAX
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
0.00%
0
0
0.00
0.00
40.79
#DIV/0!
#DIV/0!
#DIV/0!
NA
NA
EFFICIENCY STANDARD TABLE

SOURCE 2008 - 2010 ROLLING AVG
DATE REVISED:
11/15/2011
Line
Captive
Direct
1.0
38.07%
18.57%
2.1
39.29%
19.67%
3.0
33.84%
39.38%
4.0
36.23%
25.46%
5.0
34.70%
41.89%
5.1
35.53%
42.43%
5.2
32.64%
38.26%
9.0
40.68%
26.79%
11.0
29.98%
27.18%
11.1
29.98%
27.18%
11.2
29.98%
27.18%
12.0
13.54%
14.66%
17.0
30.90%
27.91%
17.1
30.90%
27.91%
17.2
30.90%
27.91%
18.0
25.20%
22.99%
18.1
25.20%
22.99%
18.2
25.20%
22.99%
19.2
34.15%
26.45%
19.4
36.24%
34.57%
21.1
34.13%
26.81%
21.2
34.57%
31.78%
22.0
35.64%
30.11%
23.0
33.06%
44.18%
24.0
37.14%
35.54%
26.0
31.17%
31.17%
27.0
27.52%
26.73%
ES:
Indep
32.21%
29.35%
32.17%
37.33%
37.93%
36.87%
39.46%
28.90%
35.46%
35.46%
35.46%
19.77%
31.95%
31.95%
31.95%
35.30%
35.30%
35.30%
37.64%
35.34%
35.82%
36.55%
27.77%
32.65%
43.62%
31.17%
39.92%
Blended Captive
28.90% 40.68%
Line Description
FIRE
ALLIED LINES
FARMOWNERS MULTIPLE PERIL
HOMEOWNERS MULTIPLE PERIL
COMMERCIAL MULTIPLE (5.1 & 5.2 Combined)
COMMERCIAL MULTIPLE PERIL(NON-LIABILITY)
COMMERCIAL MULTIPLE PERIL(LIABILITY)
INLAND MARINE
MEDICAL MALPRACTICE
MEDICAL MALPRACTICE(occ)
MEDICAL MALPRACTICE (cm)
EARTHQUAKE
OTHER LIABILITY
OTHER LIABILITY (occ)
OTHER LIABILITY (cm)
PRODUCTS LIABILITY
PRODUCTS LIABILITY (occ)
PRODUCTS LIABILITY (cm)
PRIVATE PASSENGER AUTO LIABILITY
COMMERCIAL AUTO LIABILITY
PRIVATE PASSENGER AUTO PHYSICAL DAMAGE
COMMERCIAL AUTO PHYSICAL DAMAGE
AIRCRAFT
FIDELITY
SURETY
BURGLARY & THEFT
BOILER & MACHINERY
Direct
26.79%
Indep
28.90%
LEVERAGE RATIO TABLE

SOURCE: Bests Aggregates and Averages, 2011 Edition
DATE REVISED:
11/10/2011
Line
LF
Line Description
1.0
1.1280 Fire
2.1
1.1953 Allied Lines
3.0
1.1882 Farmowners
4.0
1.1753 Homeowners
5.1
1.0952 CMP - NL
5.2
0.5073 CMP - Liab.
5.0
0.7783 CMP
9.0
1.1764 Inland Marine
11.1
0.3311 Med. Mal. Occ.
11.2
0.5216 Med. Mal. cm.
11.0
0.4558 Med. Mal.
12.0
1.0000 Earthquake
17.1
0.4072 O. Liab. Occ.
17.2
0.5220 O. Liab. cm.
17.0
0.4372 O. Liab.
18.1
0.2141 Products - Occ.
18.2
0.4644 Products - cm.
18.0
0.2363 Products
19.2
0.9677 PP Auto Liab.
19.4
0.7168 C. Auto Liab.
21.1
1.5765 PP Auto PD
21.2
1.2355 Comm Auto PD
22.0
0.5902 Aircraft
23.0
0.7692 Fidelity
24.0
0.8941 Surety
26.0
1.1144 Burglary & Theft
27.0
1.0782 Boiler & Mach.
RESERVES RATIO TABLE

SOURCE: AM Best's Aggregates & Averages - Property Casualty, 2011 Edition
DATE REVISED:
9/28/2011
LINE
UEP
LOSS
Line Description
1
0.47
1.16
FIRE
2.1
0.46
0.99
ALLIED LINES
3
0.47
1.39
FARMOWNER MP
4
0.52
0.80
HOMEOWNER MP
5
0.50
2.39
CMP
5.1
0.49
1.00
CMP (N-LIAB)
5.2
0.50
4.12
CMP (LIAB)
9
0.33
0.62
INLAND MRN
11.0
0.47
4.34
MED MAL
11.1
0.55
5.33
MED MAL - occurrence
11.2
0.45
3.87
MED MAL - claims-made
12.0
0.47
1.00
EARTHQUAKE
17.0
0.52
5.05
OTHER LIAB
17.1
0.52
6.67
OTHER LIAB - occurrence
17.2
3.24
0.52
OTHER LIAB - claims-made
18.0
0.50
5.14
PROD LIAB
18.1
0.53
5.83
PROD LIAB - occurrence
18.2
0.39
2.22
PROD LIAB - claims-made
19.2
0.33
1.13
PPA LIAB
19.4
0.46
2.73
COMLA LIAB
21.1
0.34
0.09
PPA PD
21.2
0.49
0.32
COMLA PD
22.0
0.43
2.84
AIRCRAFT
23.0
0.59
2.78
FIDELITY
24.0
0.58
4.69
SURETY
26.0
0.57
0.90
BRGLRY THEFT
27.0
0.46
1.51
BLR & MCHNRY
Loss Cost Multiplier (LCM) Template Instructions

The LCM Template spreadsheet must be completed for those rate filing submissions where the
filed line or coverage utilizes a Loss Cost Multiplier. Examples include new or existing program
rate filings that involve the adoption of Advisory Organization loss costs, and existing program rate
filings where the LCM is being revised.
There are a number of data cells on the LCM Template spreadsheet that automatically populate
either by reference to cells on other spreadsheets or by formula calculation. However there are five
lines within the LCM Template spreadsheet for which additional data entry is required. The first
three data entry items pertain to rate filing submissions that include an adoption of Advisory
Organization loss costs. The last two data entry items are required only for existing programs.
Complete the following for existing and new program rate filings when Advisory
Organization loss costs are being adopted:
Spreadsheet Item #1.1 CDI Filing Number Please enter the CDI filing number of the
Advisory Organization loss cost filing being adopted. If additional loss cost updates are
being covered, please also identify the CDI filing number(s) of the additional loss cost
updates being covered.
Spreadsheet Item #1.2 Loss Cost Percent Change Approved for the Line or Coverage
Please enter the CDI percent change approved for the Advisory Organization loss cost filing
identified as Item #1.1. If multiple loss cost updates are being covered, identify the
cumulative percent change approved.
Spreadsheet Item #1.3 AOE or LAE Load Approved for the Line or Coverage As identified
within the Advisory Organization loss cost filing entered as Item #1.1, please indicate the
type of AOE or LAE expense loading the Advisory Organization used in its loss cost filing
and enter the load amount.
Complete the following for existing programs only; do not complete the following for new
program filings:
Spreadsheet Item #2.1 Current Expense Based LCM Please enter the current expense based
LCM for the filed line/coverage.
Spreadsheet Item #2.2 Current Loss Cost Modification Expressed as a Factor Please enter
the current Loss Cost Modification Factor applicable to the current expense based LCM.
Spreadsheet Items #3 through #7 are calculated fields.
Spreadsheet Item #3 calculates the insurers current Final LCM.

Spreadsheet Item #4 calculates the Advisory Organizations AOE as a percent of loss and DCCE.
Spreadsheet Item #5 calculates the maximum CDI allowable expense based LCM for the filed
line/coverage.
Spreadsheet Item #6 calculates the maximum CDI allowable loss cost modification factor for the
filed line/coverage.
Spreadsheet Item #7 calculates the maximum CDI allowable Final LCM for the filed
line/coverage. If the Insurers current Final LCM (Item #3) and/or proposed Final LCM is greater
than the Max Final LCM (Item #7), the Insurer will need to reduce its Final LCM so that it is no
greater than the CDI calculated maximum allowable Final LCM. Otherwise, exceeding the CDI
calculated maximum allowable Final LCM will require the filing of a Variance.
LCM TEMPLATE
Edition Date:
CDI FILE NUMBER:
COMPANY/GROUP:
LINE OF INSURANCE:
LINE CODE:
0
INLAND MARINE
9
COVERAGE:
2/28/2012
ADVISORY ORGANIZATION FILING INFORMATION

1
For filings that include an adoption of Advisory Organization loss costs, complete lines 1.1, 1.2, and 1.3;
for all other filings skip lines 1.1, 1.2 and 1.3, and go to line 2.
1.1 CDI Filing Number
1.2 Loss Cost Percent Change Approved for the
Line or Coverage
1.3 AOE or LAE Load Approved for the Line or
Coverage
Type of Load
Amount of Load
(LOSS+DCCE+AOE)/LOSS
(
COMPANY LCM INFORMATION

2
If this is a New Program filing, skip lines 2.1 and 2.2 and review the Max_Final LCM result on line 7;
for all other filings complete lines 2.1 and 2.2.
2.1 Current Expense Based LCM
2.2 Current Loss Cost Modification Expressed
as a Factor (see examples below)
Example 1: If the company's loss cost modification is +15%, enter 1.15
Example 2: If the company's loss cost modification is -10%, enter 0.9
Example 3: If the company currently does not apply a loss cost modification factor, enter 1.0
Insurer's Current Final LCM (Line 2.1 * Line 2.2)
Advisory Organization's AOE as a Percent of Loss and

DCCE (Derived from Line 1.3 and the IncLoss&DCCE page)
Max_Expense Based Loss Cost Multiplier
N/A
Max_Loss Cost Modification (Existing program only)

Max_Loss Cost Modification for new program is 1.0
N/A
Max_Final LCM (Line 5 * Line 6)
NA
-1.000
#VALUE!
41.09238152
INCURRED LOSS AND DCCE EXHIBIT

Source: 2008 Edition of Best's Aggregates & Averages, Statement File Supplement - Insurance Expense Exhibit
Revised:
Line
1.0
2.1
3.0
4.0
5.0
5.1
5.2
9.0
11.0
11.1
11.2
12.0
17.0
17.1
17.2
18.0
18.1
18.2
19.2
19.4
21.1
21.2
22.0
23.0
24.0
26.0
27.0
33
2/17/2009
Line Description
FIRE
ALLIED LINES
FARM OWNERS MULTIPLE PERIL
HOMEOWNERS MULTIPLE PERIL
COMMERCIAL MULTIPLE PERIL (COMBINED)
COMMERCIAL MULTIPLE PERIL(NON-LIABILITY)
COMMERCIAL MULTIPLE PERIL(LIABILITY)
INLAND MARINE
MEDICAL MALPRACTICE (Combined)
MEDICAL MALPRACTICE (Occurrence)
MEDICAL MALPRACTICE (Claims-made)
EARTHQUAKE
OTHER LIABILITY (Combined)
OTHER LIABILITY (Occurrence)
OTHER LIABILITY (Claims-made)
PRODUCTS LIABILITY (Combined)
PRODUCTS LIABILITY (Occurrence)
PRODUCTS LIABILITY (Claims-made)
PRIVATE PASSENGER AUTO LIABILITY
COMMERCIAL AUTO LIABILITY
PRIVATE PASSENGER AUTO PHYSICAL DAMAGE
COMMERCIAL AUTO PHYSICAL DAMAGE
AIRCRAFT
FIDELITY
SURETY
BURGLARY & THEFT
BOILER & MACHINERY
MISCELLANEOUS
* line totals are used for occurrence and claims-made policies.
INC LOSS
DCCE
4,016,127
151,767
3,394,918
216,167
1,473,328
55,438
31,520,720
899,394
15,043,900
3,062,099
9,640,109
667,280
5,403,791
2,394,819
5,314,416
125,783
4,334,271
2,067,254
4,334,271
2,067,254 *
4,334,271
2,067,254 *
-32,814
-2,659
27,204,022
7,099,766
27,204,022
7,099,766 *
27,204,022
7,099,766 *
1,611,095
1,423,559
1,611,095
1,423,559 *
1,611,095
1,423,559 *
61,960,518
3,457,812
11,819,076
1,416,766
38,742,126
223,827
3,674,613
72,844
1,608,088
149,853
476,389
39,573
962,488
256,711
28,019
2,792
376,293
17,336
2,087,451
26,788
t, Part III -Total US PC Industry - ($000 omitted).
STATE OF CALIFORNIA
Edition Date:
Company Name:
Line of Insurance:

INLAND MARINE
2/28/2012
FORMS
FORM NO.
1] New:
TITLE
TYPE
SOURCE
SOURCE
FORM NO *
CATEGORY
Restricts
Coverage
[ Yes/ No ]
Broadens
Coverage
[ Yes/ No ]
Rate
Impact
[ Yes / No ]
%
Change
Flat
Rate
CLRI 006 (04/2012)
Commercial Inland Marine Policy

Declarations
n/a
n/a
n/a
n/a
n/a
n/a
CLRI 005 (04/2012)
Portable Electronics Coverage Insurance

Policy
n/a
n/a
n/a
n/a
n/a
n/a
CLRI 003 (04/2012)
Commercial Inland Marine Schedule

Covered Property
n/a
n/a
n/a
n/a
n/a
n/a
CLRI 007 (04/2012)
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 008 (04/2012)
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 009 (04/2012)
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 010 (04/2012)
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 011 (04/2012)
Device and Account Based Coverage

Endorsement A
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 012 (04/2012)

Endorsement B
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 013 (04/2012)

Endorsement C
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 014 (04/2012)

Endorsement D
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 015 (04/2012)
Electrical and Mechanical Breakdown

Coverage Endorsement
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 016 (04/2012)
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 017 (04/2012)
n/a
No
No
Yes
n/a
See Rate Manaul
Old:
2] New:
Old:
3] New:
Old:
4] New:
Old:
5] New:
Old:
6] New:
Old:
7] New:
Old:
8] New:
Old:
9] New:
Old:
10] New:
Old:
11] New:
Old:
12] New:
Old:
13] New:
Old:
14] New:
Old:
STATE OF CALIFORNIA
Edition Date:
Company Name:
Line of Insurance:

INLAND MARINE
2/28/2012
FORMS
FORM NO.
15] New:
TITLE
TYPE
SOURCE
SOURCE
FORM NO *
CATEGORY
Restricts
Coverage
[ Yes/ No ]
Broadens
Coverage
[ Yes/ No ]
Rate
Impact
[ Yes / No ]
%
Change
Flat
Rate
CLRI 018 (04/2012)

Endorsement E
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 019 (04/2012)

Endorsement F
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 020 (04/2012)
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 021 (04/2012)
n/a
No
No
Yes
n/a
See Rate Manaul
CLRI 022 (04/2012)
n/a
No
Yes
No
n/a
n/a
CLRI 023 (04/2012)
n/a
No
Yes
No
n/a
n/a
CLRI 024 (04/2012)
n/a
No
No
No
n/a
n/a
CLRI 025 (04/2012)
Commercial Inland Marine Standard

Software Schedule
n/a
No
No
No
n/a
n/a
CLRI 026 (04/2012)
n/a
No
No
No
n/a
n/a
Old:
16] New:
Old:
17] New:
Old:
18] New:
Old:
19] New:
Old:
20] New:
Old:
21] New:
Old:
22] New:
Old:
23] New:
Old:
24] New:
Old:
REQUIRED RESPONSES FOR THE ITEMS ABOVE

TYPE:
SOURCE
CATEGORY
1) Application
2) Endorsement
3) Policy
4) Other ( Please define )
1) ISO*
2) Other Advisory Organization*
3) Company
4) Other (describe)
1) New, mandatory
2) New, optional
3) Replacement, mandatory
4) Replacement, optional
5) Withdrawn, mandatory
6) Withdrawn, optional
* Provide California Dept. of Insurance number ( CDI# ) under the column identified as Source Form No.
Additional Information and Documents Required

Describe the purpose of the form or form change
STATE OF CALIFORNIA
Edition Date:
Company Name:
Line of Insurance:

INLAND MARINE
2/28/2012
FORMS
Restricts
Broadens
Rate
SOURCE
Coverage
Coverage
Impact
%
Flat
FORM NO.
TITLE
TYPE
SOURCE
FORM NO *
CATEGORY
[ Yes/ No ]
[ Yes/ No ]
[ Yes / No ]
Change
Rate
For NEW FORMS, furnish a copy of the form to be filed, unless identical to an advisory organization form. If the form is a new endorsement to the policy, describe any changes in coverage under the policy. Describe what adjustments, if any, will be made to the premium due to the introduction
of the forms.
For REVISED FORMS, describe any changes in coverages between the proposed form and the current form. Reference pertinent sections of each form affected. Brackets [ ] should be used to identify any deletions on the current form and underline all changes in the revised form. Describe
what adjustments, if any, will be made to the premium due to the revisions.
FORMS LIST
CLRI 003 (04/2012)

CLRI 005 (04/2012)
CLRI 006 (04/2012)
CLRI 007 (04/2012)
CLRI 008 (04/2012)
CLRI 009 (04/2012)
CLRI 010 (04/2012)
CLRI 011 (04/2012)
CLRI 012 (04/2012)
CLRI 013 (04/2012)
CLRI 014 (04/2012)
CLRI 015 (04/2012)
CLRI 016 (04/2012)
CLRI 017 (04/2012)
CLRI 018 (04/2012)
CLRI 019 (04/2012)
CLRI 020 (04/2012)
CLRI 021 (04/2012)
CLRI 022 (04/2012)
CLRI 023 (04/2012)
CLRI 024 (04/2012)
CLRI 025 (04/2012)
CLRI 026 (04/2012)
Commercial Inland Marine Schedule Covered Property

Portable Electronics Coverage Insurance Policy
Commercial Inland Marine Policy Declarations
Device and Account Based Coverage Endorsement A
Device and Account Based Coverage Endorsement B
Device and Account Based Coverage Endorsement C
Device and Account Based Coverage Endorsement D
Electrical and Mechanical Breakdown Coverage
Endorsement
Device and Account Based Coverage Endorsement E
Device and Account Based Coverage Endorsement F
Commercial Inland Marine Standard Software Schedule
Exhibit 17
LIBERTY MUTUAL INSURANCE COMPANY
LIBERTY INSURANCE UNDERWRITERS INC.
Portable Electronics Equipment Coverage
Explanatory Memorandum - RATES
CALIFORNIA
Liberty Mutual Insurance Company and Liberty Insurance Underwriters Inc. (the Company) are filing, for
your review and approval, a new Portable Electronics Commercial Inland Marine Insurance Policy.
This is a resubmission of SERFF filing number ASTP-128339088. The initial filing was withdrawn as it
was submitted as a rate/rule filing and should have been submitted as a new program filing. Additionally
the CDI requested that line items 6 and 8 on page 7 of the rate application be populated and requested a
revised Exhibit 17. With this resubmission, a revised Exhibit 17 has been included. The filing has been
submitted as a new program filing and lastly, line item 6 and 8 of the rate application has been populated.
The Companys Portable Electronics Commercial Inland Marine Insurance Policy program provides
coverage for insured Portable Electronic Devices. Device Based Coverage is available for customers
(subscribers) with a single Portable Electronic Device obtained from the Vendor. Account Based
Coverage is designed to provide coverage for subscribers on an account basis when the subscriber has
multiple Portable Electronic Devices on one subscriber account with the Vendor. (Portable Electronic
Devices includes cell phones or similar equipment or other wireless devices where voice, pager, or data
plan capabilities are incorporated or accessible, such as personal digital assistants (PDA), wireless
aircards, laptops, netbooks, notebooks and other similar unspecified portable electronic equipment or
devices.)
The Company is submitting a rating manual and state exception page, if applicable.
Background
This program is a commercial inland marine policy designed to cover loss, theft, damage and/or
mechanical or electrical breakdown to Portable Electronic Devices, thus allowing the Vendor to reduce or
mitigate any interruption of services to its customers.
The program is marketed and administered by a licensed agent of the Company. The agent works with
the Company and the Vendor to select specific plan options for each insured Vendor. In addition, the
agent administers the policy, responds to insurance inquiries from the subscribers, collects premiums,
and provides subscriber service.
Vendors provide Portable Electronic Devices and enroll customers into related voice or messaging
services. When customers purchase equipment or activate their voice, data and/or messaging service,
the Vendors' personnel offer them the opportunity to request enrollment for insurance coverage.
Brochures containing the coverage terms and summaries of significant program components are
available. If the customer requests enrollment under the insurance program, the request is transmitted
electronically to the agent. If eligible, the customer becomes an enrolled subscriber (Additional Insured)
under the program.
Rate Development
The rates for this program are based on those recently filed (CDI Filing # 11-10265) for the Company
under another similar program, Wireless Communications Equipment Coverage (WCEC). That program
provides coverage to Wireless Communication Providers and their subscribers for loss, theft, damage
and/or mechanical or electrical breakdown to communication equipment. While the core components of
the proposed rating manual for Portable Electronics Coverage are based on the rating manual for WCEC,
we have made some minor modifications to the rating manual to reflect the differences between the two
programs. The deviations from the current approved WCEC rating manual are explained below. In
Exhibit 17
addition, a redlined version of the countrywide rating manual, highlighting the exact differences between
the rating manuals for this program and the WCEC program, is included as follows this Explanatory
Memorandum.
Exhibit 17
Wireless Communications EquipmentPortable Electronics Coverage
Section One General Rules
I.
Application of Manual
This manual provides the rates and rules that will be used by Liberty Mutual Insurance Company and
Liberty Insurance Underwriters, Inc. (collectively referred to as the Company) in providing Wireless
Communications EquipmentPortable Electronics Coverage to Communication ProvidersPortable
Electronics Vendors and their subscriberscustomers.
II.
Eligibility Guidelines
A. LineDevice Based Coverage
This coverage is available for Additional Insureds to cover one item of Communication Equipment
associated with a specific mobile number. (Communication EquipmentPortable Electronic
device. (Portable Electronics includes cell phones or similar equipment or other wireless devices
where voice, pager, or data plan capabilities are incorporated or accessible, such as personal
digital assistants (PDA), wireless aircards, laptops, netbooks, notebooks and other similar
unspecified portable electronic equipment or devices.) Refer to Section Two LineDevice Based
Coverage Rates and Rating Rules for rating details.
B. Account Based Coverage
This coverage is available for Additional Insureds where multiple mobile numbers, and multiple
items of Communication Equipment associated with those mobile numbers,Portable Electronic
devices may be active under one subscribercustomer account with the Communications
Provider.Portable Electronics Vendor. There are two Account Based Coverage options available
to the Communications ProviderPortable Electronics Vendor. Coverage extends either:
1. automatically to the Communication Equipment associated with all mobile numbers
activePortable Electronics on the Additional Insureds wireless account; or
2. to the Communications Equipment associated with each mobile number activeonly the
Portable Electronics on the Additional Insureds wireless account for which the Additional
Insured specifically elects coverage.
If the insurance policy provides only Account Based Coverage, one of the following
endorsements will be attached: CLHICLRI 007, CLHICLRI 008, CLHICLRI 009, CLHICLRI 010,
CLHICLRI 016, or CLHICLRI 017. If the insurance policy provides a combination of Account
Based Coverage and LineDevice Based Coverage, one of the following endorsements will be
attached: CLHICLRI 011, CLHICLRI 012, CLHICLRI 013, CLHICLRI 014, CLHICLRI 018, or
CLHICLRI 019.
Additional Insureds with multiple mobile numbersportable electronic devices are characterized
into one of two groups for rating purposes:
Small Account Based Coverage. Additional Insureds with ten or less mobile
numbersdevices on their wireless account that are not characterized as business
accounts by their Communications ProviderPortable Electronics Vendor are rated as
Small Accounts. Refer to Section Three Small Account Based Coverage Rates and
Rating Rules for rating details as applicable.
Large Account Based Coverage. Additional Insureds characterized as business

accounts by their Communications ProviderPortable Electronics Vendor are rated as
Large Accounts. Refer to Section Four Large Account Based Coverage Rates and
Rating Rules for rating details as applicable.
III.
Aggregate Limit
A. LineDevice Based Coverage
02/2011 Edition
LMIC-WCECPEC-CW-1
Exhibit 17
Each subscribercustomer is limited to a set number of replacements or repairs in any consecutive
12 month period. When this limit is exhausted, coverage will cease immediately and no further
premiums will be due. Refer to Rule IV. Rate Modification Factors of Section Two LineDevice
Based Coverage Rates and Rating Rules for rating details.
B. Account Based Coverage Per LineDevice Limit
Each mobile numberdevice under the Additional Insureds wireless account that is enrolled for
Account Based Coverage is limited to a set number of replacements or repairs in any consecutive
12 month period. When this limit is exhausted for a particular mobile numberdevice, coverage
will cease immediately and no further premiums will be due for that mobile numberdevice. For
rating details, refer to Rule III. Monthly Rates of Section Three Small Account Based Coverage
Rates and Rating Rules or Rule III. Monthly Rates of Section Four Large Account Based
Coverage Rates and Rating Rules, as applicable.
C. Account Based Coverage All LinesDevices Limit
The aggregate limit of replacements or repairs available in any consecutive 12 month time period
is based on the number of mobile numbersdevices on the Additional Insureds wireless account
and enrolled for Account Based Coverage. When the applicable Aggregate Limit is exhausted,
the Additional Insureds coverage will cease immediately and no further premiums will be due.
For rating details, refer to Rule III. Monthly Rates of Section Three Small Account Based
Coverage Rates and Rating Rules or Rule III. Monthly Rates of Section Four Large Account
Based Coverage Rates and Rating Rules as applicable.
IV.
Policy Term
Policies will be issued on a continuous until cancelled basis.
V.
Factors or Multipliers
A. Unless otherwise specified, factors or multipliers are to be applied consecutively and not added
together.
B. Rate Modifications listed as % credits or debits are applied multiplicatively as follows: rate x (1
credit) or rate x (1 + debit %).
VI.
Rounding Rule
The indicated monthly premium calculated, after the application of schedule rating, may be rounded
up or down by up to $0.10 to achieve the final monthly premium.
Section Two LineDevice Based Coverage Rates and Rating Rules

I.
Coverage Levels
Covered Cause
of Loss
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
02/2011 Edition
Physical
Damage
X
X
X
X
Loss
Theft
X
X
X
X
Mechanical and
Electrical
Breakdown
X
X
LMIC-WCECPEC-CW-2
Exhibit 17
II.
Rating Tiers
A. When possible, the various models of Communication EquipmentPortable Electronic devices will
be grouped into rating tiers based on their value and other technical considerations.
B. Tier assignments of the current models of Communication EquipmentPortable Electronic devices
will be listed in the brochure provided to subscriberscustomers upon enrollment.
C. The value of Communication EquipmentPortable Electronic devices has the potential to decrease
materially over time. As such, the valuation of the various models of Communication
EquipmentPortable Electronics insured by the Company will be reviewed regularly, and tier
assignment changes may result.
insured Communications ProviderPortable Electronics Vendor based on the various models of
equipmentPortable Electronics supported by the providervendor. The table below lists the
minimum equipmentdevice value that will be assigned to each tier by any providerPortable
Electronics Vendor.
Minimum EquipmentDevice
Value
Tier 1
None
Tier 2
$50
Tier 3
$150
Tier 4
$250
Tiers 5+
$350
claim administrator for the repair and replacement of most models of wireless equipment.Portable
Electronic devices. For new, unique models of equipmentdevices, only new parts at full retail
price may be available. To recognize the impact of extremely limited use of remanufactured or
discounted parts on claim severity, the value of a particular model of equipmentdevice may be
increased according to the table below, for tiering purposes.
% Remanufactured or
Discounted Parts
> 30.0%
10.01% to 30.0%
<= 10.0%
Adjustment to
EquipmentDevice Value
for Tiering
No Adjustment
+15% to +20%
+20% to +25%
F. When model information is not readily available or tier rating is not practical due to system
constraints or other limitations, a one-size rate will be applied to all models of
equipmentdevices.
III.
Monthly Base Rates per SubscriberCustomer

A. The table below lists the base rates for each of five standard tiers, as well as the base one-size
rate.
Plan
1
2
3
4
5
Tier 1
$1.92
$2.02
$2.02
$2.72
$2.82
Tier 2
$2.62
$2.72
$2.82
$3.92
$4.12
Tier 3
$3.52
$3.62
$3.72
$5.42
$5.62
Tier 4
$4.02
$4.12
$4.32
$6.32
$6.62
Tier 5
$5.12
$5.12
$5.42
$8.12
$8.52
One-Size
$3.72
$3.72
$3.92
$5.72
$6.02
B. If additional tier breakdowns within the standard five listed above are desired, the base rates for
the additional tiers should be calculated using straight line interpolation between the base rates
and value midpoints of surrounding tiers. If the base deductibles of the surrounding tiers are not
equal, apply the appropriate deductible factor from Rule IV.A.2 to the rate for the higher
02/2011 Edition
LMIC-WCECPEC-CW-3
Exhibit 17
surrounding tier to convert it to the same deductible level as the lower surrounding tier, prior to
interpolating the rates.
C. If additional tiers, beyond the upper bound of the fifth tier listed above, are desired the base rates
for the additional higher tiers should be calculated using the following extrapolation formula:
Rate NEW TIER = (Lower Bound NEW TIER / Lower Bound TIER 5) X Rate TIER 5 X 0.90
IV.

A. Deductibles
1. The deductible underlying the base rates differs by tier. The table below shows the base
deductible for each tier.
Base Deductible
Tiers 1 and 2
$50
Tier 3 and One-Size

$50
Tiers 4 and 5+
$75
2. Various optional deductibles are available for each tier. The optional deductibles and their
associated premium factors are shown in the table below.
Optional Deductibles
Tiers 1 and 2
Deductible
Factor
$10
1.200
$20
1.150
$30
1.100
$35
1.075
$40
1.050
$45
1.025
$60
0.960
$70
0.920
$75
0.900
Tier 3 and One-Size

Deductible
Factor
$35
1.075
$40
1.050
$45
1.025
$60
0.960
$70
0.920
$75
0.900
$85
0.855
$100
0.800
Tiers 4 and 5+
Deductible
Factor
$40
1.185
$50
1.130
$60
1.080
$70
1.025
$85
0.950
$100
0.880
$110
0.835
$120
0.800
$125
0.765
$130
0.740
$135
0.720
$140
0.700
$145
0.680
$150
0.660
3. For deductible options not shown, interpolate between surrounding options to determine
deductible factor.
4. For deductible options above the largest deductible option listed for a tier, multiply the
deductible factor for the largest deductible in that tier by 0.95 for every $10 increase in
deductible, and round to the nearest 0.001, to determine the appropriate deductible factor.
For example, a $175 deductible has 2.5 $10 increments above $150. Therefore, the resulting
Tier 5 $175 deductible factor is 0.581 (0.581 = 0.660 x (0.95)^2.5).
5. Deductibles by Peril
a. Different deductibles by peril are available under the policy for Plans 3, 4 and 5.
deductibles associated with each peril. The table below shows the weights that should
be used, by plan.
Covered
Peril
02/2011 Edition
Physical
Damage
Loss/Theft
Mechanical and
Electrical
Breakdown
LMIC-WCECPEC-CW-4
Exhibit 17
Plan 3
Plan 4
Plan 5
c.
0.917
0.579
0.550
N/A
0.083
0.421
0.400
0.050
N/A
The following example illustrates the calculation for a Plan 5, Tier 2 risk with a $50
deductible for Physical Damage and Breakdown and a $70 deductible for Loss/Theft.
0.968 = 0.550 x 1.000 + 0.400 x 0.920 + 0.050 x 1.000
6. Declining Deductibles
a. The policy may provide for a deductible that decreases once the Additional Insured has
been continuously insured with no claims for a given length of time.
deductibles associated with the various time periods.
c.
The weights are developed using the following equations:

i.
2 Phase Deductible (Loss Free Additional Insured Deductible)
Deductible
Phase
1st
Months Since
Enrollment or
Last Claim at
time of Claim
0 to x
3.68% x [1 - 0.963(x+1)]/[1 - 0.963]
2nd
x forward
100% - 3.68% x [1 - 0.963(x+1)]/[1 - 0.963]
ii.
Weight
3 Phase Deductible (Good Additional Insured and Loss Free Additional Insured
Deductible)
Deductible
Phase
1st
Months Since
Enrollment or
Last Claim at
time of Claim
0 to x
3.68% x [1 - 0.963(x+1)]/[1 - 0.963]
2nd
x to y
3.68% x {[1 - 0.963(y+1)]/[1 - 0.963] - [1 - 0.963(x+1)]/[1 - 0.963]}
y forward
100% - 3.68% x [1 - 0.963(y+1)]/[1 - 0.963]
rd
Weight
d. The following example illustrates the calculation for a Plan 5, Tier 3 risk with a $100
deductible that declines to $50 deductible after 24 months.
0.879 = 60.71% x 0.800 + 39.29% x 1.000 = {3.68% x [1 0.96325]/[1-0.963]} x 0.800 +
{100% - 3.68% x [1 0.96325]/[1-0.963]} x 1.000.
B. Accessory Coverage
1. The base rates shown above contemplate coverage for basic accessories such as the
standard battery, standard cigarette lighter adaptor, standard case and standard charger.
2. Coverage for some accessories such as the standard cigarette lighter adaptor, standard case
and other similar basic accessories may be excluded. If coverage for some basic accessories
is not provided, apply a factor of 0.990 to the rate.
C. Tier Rating Expense Factor
The administration expenses associated with multi-tiered rated insureds are higher than the
expenses of one-size rated insureds. To recognize this expense variance, apply the appropriate
factor from the table below to the rate according to the number of tiers utilized for a given insured.
02/2011 Edition
LMIC-WCECPEC-CW-5
Exhibit 17
# of Tiers
1 (One-Size)
23
4
5+
Tier Rating
Expense Factor
0.950
1.000
1.025
1.050
D. Atypical Penetration Adjustment Factor

1. The base rate is modified by a factor based on the insureds historical penetration rate
according to the table below.
Penetration
Rate
>70.00%
60.01% to 70.00%
5.01% to 60.00%
3.01% to 5.00%
1.01% to 3.00%
<= 1.00%
Factor
0.60
0.60 to 0.66
1.00
1.18 to 1.21
1.21 to 1.24
1.24
2. If an insured wireless providerPortable Electronics Vendor does not have a history with this
coverage, or historical experience is not available, apply an Atypical Penetration Adjustment
Factor based on the projected penetration rate for the wireless providerPortable Electronics
Vendor.
E. Aggregate Limit of Replacements or Repairs
The aggregate limit of replacements or repairs can be increased from the base of 2 using the
table below.
Aggregate Limit of
Replacements or
Repairs
2
3
4
5
Factor
1.00
1.10
1.20
1.30
F. Experience Rating
1. The Base Rate listed above is modified by an experience rating factor based on the insureds
historical incurred loss ratio as described below.
Loss Ratio
< 54.6%
54.6% to 65.4%
65.5% to 78.5%
>= 78.6%
Experience Rating
Factor
0.60 to 0.80
0.80 to 1.00
1.00 to 1.20
1.20 to 1.40
2. If an insured wireless providervendor does not have a history with this coverage, or historical
experience is not available, apply an experience rating factor of 1.000.
G. Schedule Rating
02/2011 Edition
LMIC-WCECPEC-CW-6
Exhibit 17
specific characteristics affecting the exposure of the subscribers/modelscustomers/devices in
that tier. The modifications are totaled on an additive basis and are limited to the applicable
state maximum. Premium eligibility for schedule rating is $500.
Criteria
Geographic Mix
SubscriberCustomer
Base
Program
Administration
Expenses
Equipment Mix
Management/
Underwriting
Experience
Persistency
Part Availability
Manufacturers
Warranty
Description
rural areas
Local, regional or national scope of
Communication ProviderPortable Electronics
Vendor
the program
Deviation of covered equipmentdevices from
industry standard
Communication ProvidersPortable
Electronics Vendors business history; loss
control procedures
Actual vs. average persistency of
subscriberscustomers
equipment devices
Maximum
Credit
15%
Maximum
Debit
15%
15%
15%
10%
10%
15%
15%
10%
10%
15%
15%
25%
25%
15%
15%
Section Three Small Account Based Coverage Rates and Rating Rules
I.
Coverage Levels
II.
Covered Cause
of Loss
Physical
Damage
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
X
X
X
X
Loss
Theft
X
X
X
X
Mechanical and
Electrical
Breakdown
X
X
Rating Tiers
will be listed in the brochure provided to subscriberscustomers upon enrollment. When an
insured Communications ProviderPortable Electronics Vendor offers both LineDevice Based and
02/2011 Edition
LMIC-WCECPEC-CW-7
Exhibit 17
Account Based Coverage, the same equipmentdevice tiering assignments will apply to both
coverage options.
Electronics Vendor.
Value
Tier 1
None
Tier 2
$50
Tier 3
$150
Tier 4
$250
Tiers 5+
$350
price may be available. To recognize the impact of extremely limited remanufactured or
% Remanufactured or
Discounted Parts
> 30.0%
10.01% to 30.0%
<= 10.0%
Adjustment to
EquipmentDevice Value
for Tiering
No Adjustment
+15% to +20%
+20% to +25%
Deductibles of Section Two LineDevice Based Coverage Rates and Rating Rules) Rates will
not vary by tier for subscriberscustomers electing Account Based Coverage.
III.
Monthly Rates
A. Per LineDevice Limit Coverage
LineDevice Based Coverage Rates and Rating Rules.
projected distribution of equipmentPortable Electronic devices by tier for the insured
Communication ProviderPortable Electronics Vendor.
enrolled mobile numbersdevices in the subscriberscustomers account.
4. Apply the appropriate percentage from the table below to the aggregate rate for the account.
Number of
Mobile
NumbersDevices
2
3+
02/2011 Edition
% of rate
85% - 95%
80% - 95%
LMIC-WCECPEC-CW-8
Exhibit 17
5. The rate factors listed above assume that the Communications Equipmentall Portable
Electronic devices associated with all active mobile numbers on an enrolled account will be
covered. A Communications ProviderPortable Electronics Vendor may elect to offer
Additional Insureds the option of insuring only the Communications Equipmentselect Portable
Electronic devices associated with select mobile numbers under an enrolled account. If this
option is selected, to reflect the increased underwriting risk, the factor outlined in Rule III.A.4
above should not be applied.
B. All LinesDevices Limit Coverage
3. Determine the aggregate rate per account by applying the applicable percentage from the
table below to the average rate across all tiers based on the number of mobile
numbersdevices under the account.
Number of
Mobile
NumbersDevices
2
3
4
5
6
7
8
9
10
% of rate
130% - 190%
180% - 255%
220% - 300%
265% - 375%
330% - 420%
385% - 455%
440% - 520%
495% - 585%
550% - 650%

of wireless numbersdevices on an Additional Insureds wireless account and enrolled for
coverage hereunder (number of mobile numbers).. The base rate listed previously is
modified to reflect the aggregate limit of replacements or repairs per 12 month period.
Number of
Mobile
NumbersDevices
2
3
4
5
6
7
8
9
10
02/2011 Edition

2
1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3
1.30
1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
4
1.50
1.15
1.00
N/A
N/A
N/A
N/A
N/A
N/A
5
1.70
1.35
1.10
1.00
N/A
N/A
N/A
N/A
N/A
6
1.85
1.45
1.25
1.10
1.00
N/A
N/A
N/A
N/A
7
1.95
1.55
1.30
1.15
1.08
1.00
N/A
N/A
N/A
8
2.00
1.60
1.40
1.25
1.15
1.07
1.00
N/A
N/A
9
2.05
1.65
1.45
1.30
1.20
1.10
1.06
1.00
N/A
10
2.10
1.70
1.50
1.35
1.25
1.15
1.10
1.05
1.00
11
2.15
1.75
1.53
1.40
1.29
1.20
1.15
1.10
1.05
12
2.17
1.77
1.56
1.42
1.32
1.25
1.19
1.14
1.09
13
2.21
1.81
1.59
1.46
1.36
1.30
1.24
1.19
1.14
14
2.24
1.84
1.62
1.49
1.39
1.36
1.29
1.23
1.19
LMIC-WCECPEC-CW-9
15
2.28
1.88
1.65
1.53
1.43
1.42
1.34
1.28
1.24
Exhibit 17
b. The rate factors listed above assume that the Communications Equipmentall Portable
Electronic devices associated with all active mobile numbers on an enrolled account will
be covered. A Communications ProviderPortable Electronics Vendor may elect to offer
Additional Insureds the option of insuring only the Communications Equipmentselect
Portable Electronic devices associated with select mobile numbers under an enrolled
account. If this option is selected, a rating factor of 1.10 will be applied to the factors in
Rule III.B.4.a above to reflect the increased underwriting risk.
c.
IV.
If an Additional Insured removes a mobile numberdevice from their account with the
Communications ProviderPortable Electronics Vendor and the aggregate limit of
replacements or repairs is realized, the rate factors listed above assume that coverage
ceases immediately and no further premiums are due. If the aggregate limit of
replacements or repairs is automatically adjusted after completion of each covered claim
based on the total number of mobile numbersdevices on the Additional Insureds account
immediately after completion of the claim, a rating factor of 1.05 will be applied to the
factors in Rule III.B.4.a above to reflect the increased underwriting risk.

Loss Ratio
< 54.6%
54.6% to 65.4%
65.5% to 78.5%
>= 78.6%
Experience Rating
Factor
0.60 to 0.80
0.80 to 1.00
1.00 to 1.20
1.20 to 1.40
coverage, or historical experience is not available, apply an experience rating factor of 1.000.
B. Schedule Rating
Criteria
Geographic Mix
SubscriberCustomer
Base
Program
Administration
Expenses
Equipment Mix
Management/
Underwriting
Experience
Persistency
02/2011 Edition
Description
rural areas
Vendor
the program
industry standard
control procedures
Maximum
Credit
15%
Maximum
Debit
15%
15%
15%
10%
10%
15%
15%
10%
10%
15%
15%
LMIC-WCECPEC-CW-10
Exhibit 17
Criteria
Part Availability
Manufacturers
Warranty
Description
equipmentdevices
Maximum
Credit
25%
Maximum
Debit
25%
15%
15%
Section Four Large Account Based Coverage Rates and Rating Rules
I.
Coverage Levels
Covered Cause
of Loss
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
Physical
Damage
X
X
X
X
Loss
Theft
X
X
X
X
Mechanical and
Electrical
Breakdown
X
X
II. Rating Tiers

will be listed in the brochure provided to subscriberscustomers upon enrollment. When an
insured Communications ProviderPortable Electronics Vendor offers both LineDevice Based and
Account Based Coverage, the same equipmentdevice tiering assignments will apply to both
coverage options.
Electronics Vendor.
Value
Tier 1
None
Tier 2
$50
Tier 3
$150
Tier 4
$250
Tiers 5+
$350
price may be available. To recognize the impact of extremely limited remanufactured or
02/2011 Edition
LMIC-WCECPEC-CW-11
Exhibit 17
% Remanufactured or
Discounted Parts
Adjustment to
EquipmentDevice Value for
Tiering
No Adjustment
+15% to +20%
+20% to +25%
> 30.0%
10.01% to 30.0%
<= 10.0%
Deductibles of Section Two LineDevice Based Coverage Rates and Rating Rules) Rates will
not vary by tier for subscriberscustomers electing Account Based Coverage.
III. Monthly Rates
A. Per LineDevice Limit Coverage
enrolled mobile numbers in Portable Electronic devices on the subscriberscustomers
account.
4. If all of the Communications Equipment associated with all active mobile numbers on
Portable Electronic devices on the customers account are enrolled accounts will be
coveredfor coverage, apply a factor between 0.90 and 0.95.
5. A Communications Providervendor may elect to offer Additional Insureds the option of
insuring only the Communications Equipment associated with select mobile numbersPortable
Electronic devices under an enrolled account. If this option is selected, to reflect the
increased underwriting risk, the factor outlined in Rule III.A.4 above should not be applied.
B. All LinesDevices Limit Coverage
3. Determine the aggregate rate per account by applying the applicable percentages from the
table below to the average rate across all tiers per enrolled mobile numberdevice under the
account.
Number of
Mobile
NumbersDevices
1st
nd
2 5th
6th 10th
11th 20th
02/2011 Edition
% of rate
100%
95% - 100%
95% - 100%
95% - 100%
LMIC-WCECPEC-CW-12
Exhibit 17
21st 50th
51st 100th
101st+
90% - 100%
85% - 100%
80% - 100%
The following example illustrates the calculation for a sample account with 80 mobile
numbersdevices: Aggregate Rate per Account = Average Rate x [(1 x 100%) + (4 x 95%) +
(5 x 95%) + (10 x 95%) + (30 x 90%) + (30 x 85%)] = Average Rate x 71.55.
of wireless numbersdevices on an Additional Insureds wireless account and enrolled for
coverage hereunder (number of mobile numbers).. The base rate listed previously is
modified to reflect the aggregate limit of replacements or repairs per 12 month period.
i. 10 or Less Enrolled Mobile NumbersDevices
Number of
Mobile
NumbersDevices
2
3
4
5
6
7
8
9
10

2
1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3
1.30
1.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
4
1.50
1.15
1.00
N/A
N/A
N/A
N/A
N/A
N/A
5
1.70
1.35
1.10
1.00
N/A
N/A
N/A
N/A
N/A
6
1.85
1.45
1.25
1.10
1.00
N/A
N/A
N/A
N/A
7
1.95
1.55
1.30
1.15
1.08
1.00
N/A
N/A
N/A
8
2.00
1.60
1.40
1.25
1.15
1.07
1.00
N/A
N/A
9
2.05
1.65
1.45
1.30
1.20
1.10
1.06
1.00
N/A
10
2.10
1.70
1.50
1.35
1.25
1.15
1.10
1.05
1.00
11
2.15
1.75
1.53
1.40
1.29
1.20
1.15
1.10
1.05
12
2.17
1.77
1.56
1.42
1.32
1.25
1.19
1.14
1.09
13
2.21
1.81
1.59
1.46
1.36
1.30
1.24
1.19
1.14
14
2.24
1.84
1.62
1.49
1.39
1.36
1.29
1.23
1.19
ii. More than 10 Enrolled Mobile NumbersDevices

Use the following formula: Z ^ (A / B) + (1 Z) ^ (A / B), rounded to 3 decimal
places, where,
A = # of Mobile NumbersDevices on the Account
B = # of Replacements
Z = Minimum of 0.999 and 0.96 x (1.00375) ^ (A / 10), rounded to 3 places
b. The rate factors listed above assume that the Communications Equipmentall Portable
Electronic devices associated with all active mobile numbers on an enrolled account will
be covered. A Communications ProviderPortable Electronics Vendor may elect to offer
Additional Insureds the option of insuring only the Communications Equipmentselect
Portable Electronic devices associated with select mobile numbers under an enrolled
account. If this option is selected, a rating factor of 1.10 will be applied to the factors in
Rule III.B.4.a above to reflect the increased underwriting risk.
c.
If an Additional Insured removes a mobile numberdevice from their account with the
Communications ProviderPortable Electronics Vendor and the aggregate limit of
replacements or repairs is realized, the rate factors listed above assume that coverage
ceases immediately and no further premiums are due. If the aggregate limit of
replacements or repairs is automatically adjusted after completion of each covered claim
based on the total number of mobile numbersdevices on the Additional Insureds account
immediately after completion of the claim, a rating factor of 1.05 will be applied to the
factors in Rule III.B.4.a above to reflect the increased underwriting risk.
IV. Rate Modification Factors
02/2011 Edition
LMIC-WCECPEC-CW-13
15
2.28
1.88
1.65
1.53
1.43
1.42
1.34
1.28
1.24
Exhibit 17
Loss Ratio
< 54.6%
54.6% to 65.4%
65.5% to 78.5%
>= 78.6%
Experience Rating
Factor
0.60 to 0.80
0.80 to 1.00
1.00 to 1.20
1.20 to 1.40
coverage, or historical experience is not available, apply an experience rating factor of 1.000.
B. Schedule Rating
Criteria
Geographic Mix
SubscriberCustomer
Base
Program
Administration
Expenses
Equipment Mix
Management/
Underwriting
Experience
Persistency
Part Availability
Manufacturers
Warranty
Description
rural areas
Vendor
the program
industry standard
control procedures
equipmentdevices
Maximum
Credit
15%
Maximum
Debit
15%
15%
15%
10%
10%
15%
15%
10%
10%
15%
15%
25%
25%
15%
15%
02/2011 Edition
LMIC-WCECPEC-CW-14
LIBERTY MUTUAL INSURANCE COMPANY

LIBERTY INSURANCE UNDERWRITERS INC.
Portable Electronics Equipment Coverage
Liberty Mutual Insurance Company and Liberty Insurance Underwriters Inc. (the Company) are filing, for
your review and approval, a new Portable Electronics Commercial Inland Marine Insurance Policy.
The Companys Portable Electronics Commercial Inland Marine Insurance Policy program provides
coverage for insured Portable Electronic Devices. Device Based Coverage is available for customers
(subscribers) with a single Portable Electronic Device obtained from the Vendor. Account Based
Coverage is designed to provide coverage for subscribers on an account basis when the subscriber has
multiple Portable Electronic Devices on one subscriber account with the Vendor. (Portable Electronic
Devices includes cell phones or similar equipment or other wireless devices where voice, pager, or data
plan capabilities are incorporated or accessible, such as personal digital assistants (PDA), wireless
aircards, laptops, netbooks, notebooks and other similar unspecified portable electronic equipment or
devices.)
The Company is submitting a rating manual and state exception page, if applicable, as well as a policy,
Declarations page, twelve Account Based Coverage endorsements, two deductible endorsements and
clarifying endorsements that delete language or exclusions contained within the policy form.
Background
This program is a commercial inland marine policy designed to cover loss, theft, damage and/or
mechanical or electrical breakdown to Portable Electronic Devices, thus allowing the Vendor to reduce or
mitigate any interruption of services to its customers.
The program is marketed and administered by a licensed agent of the Company. The agent works with
the Company and the Vendor to select specific plan options for each insured Vendor. In addition, the
agent administers the policy, responds to insurance inquiries from the subscribers, collects premiums,
and provides subscriber service.
Vendors provide Portable Electronic Devices and enroll customers into related voice or messaging
services. When customers purchase equipment or activate their voice, data and/or messaging service,
the Vendors' personnel offer them the opportunity to request enrollment for insurance coverage.
Brochures containing the coverage terms and summaries of significant program components are
available. If the customer requests enrollment under the insurance program, the request is transmitted
electronically to the agent. If eligible, the customer becomes an enrolled subscriber (Additional Insured)
under the program.
Rate Development
The rates for this program are based on those recently filed (CDI Filing # 11-10265) for the Company
under another similar program, Wireless Communications Equipment Coverage (WCEC). That program
provides coverage to Wireless Communication Providers and their subscribers for loss, theft, damage
and/or mechanical or electrical breakdown to communication equipment. While the core components of
the proposed rating manual for Portable Electronics Coverage are based on the rating manual for WCEC,
we have made some minor modifications to the rating manual to reflect the differences between the two
programs. The deviations from the current approved WCEC rating manual are explained below. In
addition, a redlined version of the countrywide rating manual, highlighting the exact differences between
the rating manuals for this program and the WCEC program, is included as Exhibit 17.
Page 1 of 3
Forms
The Company is submitting the following forms:
o
The declarations page, CLRI 006, provides specific information such as the coverage plan, applicable
deductible, etc. To assist in the review process, we included explanatory language in red text.
A policy form, CLRI 005, which outlines the coverage and conditions of the policy. To assist in the
review process, we included explanatory language in red text.
Eight endorsements are utilized to support Account Based Coverage with an Aggregate Limit that
provides for a maximum number of losses for each Additional Insureds account. Four modify the
policy to provide only Account Based Coverage (Account Based Coverage Endorsements). Four
modify the policy to accommodate both Device and Account Based Coverage (Device and Account
Based Coverage Endorsements):
Account Based Coverage Endorsements replace portions of the Coverage, Limits of Insurance
and Additional Conditions sections of the policy to reflect Account Based Coverage rather than
Device Based Coverage.
Form numbers CLRI 007 and CLRI 008 will be utilized when only Account Based Coverage is
provided under the policy and all the Portable Electronic Devices under a subscribers
insured account are enrolled for coverage. CLRI 007 provides for the review and adjustment
of the Aggregate Limit at the time an Additional Insured adds or removes devices. CLRI 008
provides for the review and adjustment of the Aggregate Limit at the time a replacement or
repair is provided.
Form numbers CLRI 009 and CLRI 010 will be utilized when only Account Based Coverage is
provided under the policy and subscribers elect to enroll only the select Portable Electronic
Devices under their account. CLRI 009 provides for the review and adjustment of the
Aggregate Limit at the time an Additional Insured adds or removes devices. CLRI 010
provides for the review and adjustment of the Aggregate Limit at the time a replacement or
repair is provided.
Device and Account Based Coverage Endorsements replace portions of the Coverage, Limits of
Insurance and Additional Conditions sections of the policy to reflect both Account Based
Coverage and Device Based Coverage.
Form numbers CLRI 011 and CLRI 012 will be utilized when both Account Based Coverage
and Device Based Coverage are provided under the policy and all the Portable Electronic
Devices associated under a subscribers insured account are enrolled for coverage. CLRI
011 will be utilized when the Aggregate Limit is reviewed at the time an Additional Insured
adds or removes devices. CLRI 012 will be utilized when the Aggregate Limit is reviewed at
the time a replacement or repair is provided.
Form numbers CLRI 013 and CLRI 014 will be utilized when both Account Based Coverage
and Device Based Coverage are provided under the policy and subscribers elect to enroll
only select Portable Electronic Devices under their account. CLRI 013 will be utilized when
the Aggregate Limit is reviewed at the time an Additional Insured adds or removes devices.
CLRI 014 will be utilized when the Aggregate Limit is reviewed at the time a replacement or
repair is provided.
Four endorsements supporting Account Based Coverage with an Aggregate Limit that provides for a
fixed number of losses per enrolled device on an Additional Insureds account. These endorsements
amend the Coverage, Limits of Insurance and Additional Conditions sections of the policy based upon
the enrollment option selected under the program:
Page 2 of 3
Form number CLRI 016 will be utilized when only Account Based Coverage is provided under
the policy and the Portable Electronic Devices associated with all of the devices under a
subscribers insured account are enrolled for coverage with an Aggregate Limit that provides
for a fixed number of losses per enrolled device under the account.
Form number CLRI 017 will be utilized when only Account Based Coverage is provided under
the policy and subscribers elect to enroll only select Portable Electronic Devices under their
account with an Aggregate Limit that provides for a fixed number of losses per enrolled
device under the account.
Form number CLRI 018 will be utilized when both Account Based Coverage and Device
Based Coverage are provided under the policy and the Portable Electronic Devices
associated with all of the devices under a subscribers insured account is enrolled for
coverage with an Aggregate Limit that provides for a fixed number of losses per enrolled
device under the account.
Form number CLRI 019 will be utilized when both Account Based Coverage and Device
Based Coverage are provided under the policy and subscribers elect to enroll only select
Portable Electronic Devices under their account with an Aggregate Limit that provides for a
fixed number of losses per enrolled devices under the account.
Two deductible endorsements are introduced.
Form number CLRI 020 will be utilized when the program provides a Good or Loss Free
Additional Insured declining deductible.
Form number CLRI 021 will be utilized when there is a different deductible based on the
cause of loss.
Five additional endorsements are provided as follows:
Form number CLRI 015 deletes the electrical and mechanical breakdown exclusion
contained in the policy when these are covered causes of loss, i.e. when plan 3 or 5 is
selected on the declaration page. When this exclusionary endorsement is added to a policy,
the exclusions section of the policy will be renumbered accordingly to reflect the elimination
of the exclusion.
Form number CLRI 022 will be utilized when the program provides virus coverage. This
endorsement deletes the virus exclusion from the policy when the policy covers computer
viruses or other malicious codes that disrupt the normal operation of the covered property or
destructs the data or programs stored in the covered property.
Form number CLRI 023 will be utilized when the program provides coverage for batteries.
This endorsement deletes batteries from the Property Not Covered section when batteries
are covered under the policy.
Form number CLRI 024 amends the Standard Software definition under the Property Not
Covered section to include other covered software listed on the Standard Software
Schedule.
Form number CLRI 025 is the Standard Software Schedule that will be used to list the
software covered under the policy.
A forms list showing all of the forms which will be used with this program is enclosed.
Page 3 of 3

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Asurion Rate Filing

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SERFF Tracking #: ASTP-128484141

State Tracking #: 12-5431; 12-5432

Company Tracking #: LMG-IM-CLRI-0412-F/R

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Liberty Insurance Underwriters Inc.

SERFF Tracking #: ASTP-128484141

State Tracking #: 12-5431; 12-5432

Company Tracking #: LMG-IM-CLRI-0412-F/R

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Status of Filing in Domicile: Pending

Company and Contact

SERFF Tracking #: ASTP-128484141

State Tracking #: 12-5431; 12-5432

Company Tracking #: LMG-IM-CLRI-0412-F/R

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Filing Company Information

State of Domicile: Illinois

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Objection Letters and Response Letters

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Overall Rate Information for Multiple Company Filings

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Overall Percentage Rate Impact For This Filing

Liberty Insurance Underwriters Inc., ...

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Schedule Item Status

SERFF Tracking #: ASTP-128484141

State Tracking #: 12-5431; 12-5432

Company Tracking #: LMG-IM-CLRI-0412-F/R

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Pending company response

Dear Renee Pace,

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Account Based Coverage CLRI 007

Account Based Coverage CLRI 008

Account Based Coverage CLRI 009

Account Based Coverage CLRI 010

Device and Account

Device and Account

Device and Account

Schedule Item Form

09.0 Inland Marine/09.0007 Communication Equipment (Cellular Telephones)

First Filing Company:

Liberty Insurance Underwriters Inc., ...

Account Based Coverage CLRI 017

Device and Account

Device and Account